THE  LIBRARY 
OF 

THE  UNIVERSITY 

OF  CALIFORNIA 

LOS  ANGELES 

SCHOOL  OF  LAW 


RATE 
REGULATION 


OP 


GAS  A^D   ELEOTEIO   LIGHTING 


By    van  SINDEREN  LINDSLEY,  A.  B.,  Yale 

MEMBER  OF  THE  NEW  YORK  BAR 


THE  BANKS  LAW  PUBLISHING  COMPANY 

21  Murray  St.,  New  York 

1906 


Copyright,  1906,  by  o 


THE  BANKS  LAW  PUBLISHING  COMPANY. 


!? 


f4 


PREFACE. 

The  object  of  this  little  book  is  to  set  forth,  as 
concisely  as  the  scope  of  the  subject  will  permit, 
the  legislative  acts  and  decided  cases  in  the  sev- 
eral states  affecting  the  business  of  supplying  gas 
and  electric  light. 

The  book  may  also  be  useful  to  those  interested 
in  rate  regulation  of  railroads  on  which  public  in- 
terest seems  now  to  be  centered  in  an  unusual 
degree,  for,  while  the  principal  object  sought  was 
a  compilation  of  the  statutes  and  decisions  relating 
to  gas  and  electric  hght,  yet  the  doctrine  of  rate 
regulation  as  ultimately  worked  out  will  doubt- 
less depend  on  general  principles  affecting  all  pub- 
lic utilities.  Indeed  the  principal  decisions  relied 
on  as  furnishing  the  rule  of  construction  for  gas 
and  electric  light  legislation,  are  decisions  which 
have  construed  statutes  affecting  other  but  analo- 
gous industries. 

In  my  treatment  of  this  subject  is  included  a 
consideration  of  the  various  features  of  the  legis- 
lation of  the  several  states  affecting  this  subject, 
the  power  of  the  legislatures  of  the  several  states 

iii 


IV  PREFACE. 

to  regulate  rates,  the  constitutionality  of  such  legis- 
lation, to  what  extent  rates  may  be  regulated,  the 
decisions  of  the  courts  as  to  the  reasonableness  of 
such  rates  and  the  basis  the  courts  have  adopted 
in  determining  the  reasonableness  of  rates. 

A  reference  to  the  statutes  of  the  several  states 
and  a  suitable  table  of  decided  cases  are  annexed. 

Van  Sinderen  Lindsley. 

New  York  City,   January  1,   1906. 


TABLE  OF  CONTENTS. 


PART    I  PAGE 

The  Power  of  the  Legislature  to  Regulate  Rates 
Limitation  of  the  Power  of  the  Legislature 1 

PART  II 

The    Courts    Determine    the    Reasonableness    of 

Rates  as  Fixed  by  the  Legislature 9 

The  Basis  the  Courts  have  Adopted  in  Determining 

THE  Reasonableness  of  Rates 11 

The  Courts  Restrain  the  Enforcement  of  Unrea- 
sonable Rates 13 

PART  III 

Digests  of  Important  Cases  in  the  Federal  and 
State  Courts  Affecting  Gas  and  Electric  Light 
and  Water  Companies  and  Grain  Elevators, 
Slaughter  Houses  and  Railroads 14 

PART  IV 

Compilation  of  the  Statutes  of  the  Several  States 

Affecting  Gas  and  Electric  Light 58 

V 


RATE    REGULATION. 

PART  I. 

INTRODUCTORY.      POWER  OF  LEGISLATURES  TO  REGU- 
LATE   RATES.       REVIEW    BY    THE    COURTS. 

The  legislatures  of  the  several  states  have  from 
time  to  time  in  the  past  thirty  years  enacted  laws 
authorizing  municipalities  to  erect  gas  and  electric 
light-  plants  for  the  purpose  of  supplying  such  mu- 
nicipalities, and  their  inhabitants,  with  light,  and 
some  of  such  statutes  have  provided  for  the  regu- 
lation of  the  rates  which  might  l^e  charged  for 
supplying  such  light. ^ 

Statutes  have  also  been  enacted  in  some  of  the 
states  to  regulate  the  rates  which  private  corpora- 
tions or  individuals  may  charge  for  supplying  mu- 
nicipalities and  the  inhabitants  thereof  with  gas 
and  electric  light. ^ 

This  legislation,  with  respect  to  municipalities, 
has  usually  taken  the  form  of  a  general  statute, 
but  in  some  instances  it  has  taken  the  form  either 

1  See  annexed  statutes  of  the  several  .states. 

*     1 


Z  EATE    REGULATION. 

of  a  statute  in  regard  to  a  particular  municipality, 
or  provision  for  such  regulation  is  made  in  the 
charter  of  the  municipality. 

Gas  having  been  in  use  prior  to  electricity,  this 
legislation  at  first  affected  gas  light  only,  but  as 
electricity  came  to  be  used  for  lighting,  later  legis- 
lation included  light  by  that  agency  also. 

The  states,  in  regulating  the  rates  for  gas  and 
electric  light,  have  only  applied  to  such  industries 
a  policy  previously  applied  in  the  case  of  other 
public  utilities,  such  as  the  railroad,  water,  grain 
elevator  and  slaughter  house. 

The  question  as  to  whether  the  state  had  any 
power  at  all  to  regulate  the  rates  which  might  be 
charged  for  public  utilities  was  first  presented  to 
the  United  States  Supreme  Court  in  the  famous 
Granger  cases  in  1876.  These  so-called  Granger 
cases  are:  Munn  v.  Illinois,  94  U.  S.  113;  Chicago, 
Burlington  and  Quincy  Railroad  Co.  v.  Iowa,  94 
U.  S.  155;  Peik  v.  Chicago  and  Northwestern  Rail- 
way Co.,  and  Lawrence  v.  same,  94  U.  S.  164. 

The  Munn  case  involved  charges  for  elevating 
and  storing  grain,  and  it  was  the  first  case  in  the 
Supreme  Court  of  the  United  States  in  which  the 
doctrine  was  laid  down  that  a  state  might  regu- 
late such  charges.  It  will  be  seen  that  in  this 
case  the  question  at  issue  was  not  limited  to  the 
power  of  regulating  rates  charged  by  corporations 
enjoying  public  franchises,  but  the  decision  of  the 


INTllODUCTORY.  6 

case  went  to  the  extent  of  holding  that  even  an 
individual  employing  no  public  franchise,  but  who 
has  devoted  his  propert}^  to  a  business  affected 
with  a  public  use,  is  subject  to  legislative  restric- 
tions as  to  the  rates  which  he  may  charge.  This 
doctrine  was  followed  in  the  same  year  in  Chicago, 
Burlington  and  Quincy  Railroad  Co.  v.  Iowa,  supra, 
Peik  V.  Chicago  and  Northwestern  Railway  Co.  and 
Lawrence  v.  same,  supra,  which  were  railroad 
cases.  In  these  cases  it  was  held  that  the  state 
had  the  power  to  fix  the  rates,  and  that  the  courts 
had  no  power  to  pass  upon  the  reasonableness  of 
such  rates.  The  United  States  Supreme  Court, 
however,  in  later  cases,  has  qualified  this  doctrine 
by  declaring  that  statutes  fixing  rates,  amounting 
to  confiscation,  are  void.^     Accordingly  it  has  been 

1  Spring  Valley  Water  Works  v.  v.  Snell,  95  111.  App.  552;  Peoples 

Schottler,  110  U.  S.  347;  Chicago,  Gas  Light  &  Coke  Co.  v.  Hale,  94 

etc.,  Ry.  Co.  i;.  Minn.,  134  U.S.  418;  111.  App.  406;  Opinion  of  Justices, 

Reagan  v.  Farmers  Loan  &  Trust  1.50  Mass.  592;  Williams  v.  Mutual 

Co.,  154  U.  S.  362;  Chicago,  etc..  Gas  Co.,  52  Mich.  499;  Alpena  Elec- 

Ry.  Co.  V.  Wellman,  143  U.  S.  339;  trie  Co.  t'.  City  of  Alpena,  130  Mich. 

New    Memphis    Gas    Light   Co.    v.  413;  Pingree  v.  Mutual  GasCo.,  107 

City  of  Memphis,  72  Fed.  Rep.  952;  Mich.  156;  Mitchell  v.  City  of  Ne- 

Smyth  V.  Ames,  169  U.  S.  466;  San  gaunee,    113   Mich.    3.59;   St.    Paul 

Diego  Land  Co.  v.  National  City,  Gas  Light  Co.  v.  City  of  St.  Paul, 

174  U.  S.  739;  Cotting  v.  Kansas  91  Minn.  521;  State  v.  Sedalia  Gas 

City  Stock  Yards  Co.,  183  TJ.  S.  79;  Light  Co.,  34  Mo.  App.  501;  State 

Stanislaus  County  v.  San  Joaquin  v.  Laclede  Gas  Light  Co.,  102  Mo. 

C.  &  I.  Co.,  192  U.  S.  201;  Leadville  App.  472;  State  v.  Allen,  178  Mo. 

Water  Co.  v.  City  of  Leadville,  22  555;  Wabaska  Electric  Co.  v.  City 

Col.  297;  Dcs  Moines  v.  Des  Moines  of   Wymore,    60   Neb.    199;   Sharp 

Water  Works  Co.,   95   Iowa,   348;  v.  City  of  South  Omaha,  53  Neb. 

Clinton  Electric  Light  H.  &  P.  Co.  700;  Gould  v.   Edison  Electric  II- 


\y 


4  RATE    REGULATION. 

held  in  subsequent  cases  by  the  same  tribunal  that 
such  regulation,  whether  by  the  state  or  munici- 
pality, must  be  reasonable,  and  not  such  as  to 
deprive  any  one  of  fair  compensation  for  service 
rendered.  The  rule  now  may  fairly  be  stated  to 
be  that  the  state  has  the  power  to  regulate  rates, 
but  that  such  regulation  must  not  operate  to  de- 
prive any  one  of  a  fair  and  reasonable  return  upon 
the  money  invested  in  any  particular  enterprise, 
subject  to  such  regulation.  If  the  state  does  enact 
statutes  which  operate  to  deprive  any  one  of  a 
fair  and  reasonable  return  upon  the  capital  in- 
vested in  such  enterprise,  then  recourse  may  be 
had  to  the  courts  to  determine  the  reasonableness 
of  such  rates,  and  if  they  are  found  to  be  unrea- 
sonable their  enforcement  may  be  enjoined. 

This  power  of  the  legislature  to  regulate  the 
rates  or  charges  which  may  be  made  by  indi- 
viduals or  corporations  for  the  supply  of  public 
utilities  extends  to  all  public  utilities,  and  where 
an  individual  or  corporation  devotes  his  or  its 
property  to  a  use  in  v/hich  the  public  has  an  in- 
^      terest,  he  or  it  comes  within  the  sphere  of  this 

luminating  Co.,  29  Miss.  242;  State  v.  Cinn.  Gas  Light  &  Coke  Co.,  18 
ex  rel.  Attorney  General  v.  Ironton  Ohio  St.  262;  State  ex  rel.  Hadden 
Gas  Co.,  37  Ohio  St.  45;  Cincinnati,  v.  Cleveland  Gas  Light  &  Coke  Co., 
Hamilton  &  Dayton  R.  R.  Co.  r.  3  Ohio  Circuit  Rep.  251;  State  ex 
Village  of  Bowling  Green,  57  Ohio  rel  v.  Columbns  Gas  Light  ct  Coke 
St.  336;  Cincinnati  Gas  Light  Sz  Co.,  34  Ohio  St.  572;  Shepard  r. 
Coke  Co.  V.  Avondale,  43  Ohio  St.  Milwaukee  Gas  Light  Co.,  6  Wis. 
257;  State  ex  rel.  Attorney  General   539. 


INTRODUCTORY. 


regulation.  Whether  such  individual  or  corpora- 
tion be  engaged  in  operating  a  railroad,  carrying 
freight  and  passengers,  or  engaged  in  the  business 
of  conducting  slaughter  houses  for  the  public  use, 
or  engaged  in  supplying  water  to  individuals  of  a 
community,  or  engaged  in  furnishing  and  supply- 
ing light  by  gas,  electricity  or  other  means,  they 
are  all  devoting  their  property  to  a  use  in  which 
the  public  has  an  interest,  and  such  service  is  a 
public  utility  and  subject  to  this  power  of  the 
state  to  regulate  the  rates  which  may  be  charged. 

This  power  of  the  legislature,  however,  is  not 
an  unlimited  power,  so  that  such  rates  may  be 
fixed  as  would  amount  to  a  confiscation  of  prop- 
erty. The  regulation  of  rates  is  limited  to  a  rea- 
sonable regulation,  and  if  the  rates  so  fixed  are 
unreasonable  and  unjust,  recourse  may  be  had  to 
the  courts  to  restrain  the  enforcement  of  such 
rates. 

The  courts  have  no  power  to  fix  a  rate,  but  only 
have  power  to  say  whether  a  rate  which  has  been 
fixed  by  the  legislature,  or  by  bodies  created  by  it, 
is  reasonable,  and  if  it  is  determined  that  such 
rates  are  unreasonable  their  enforcement  may  be 
enjoined.^ 

1  Chicago  &c.  Ry.  Co.  r.  Minn.,  Smyth   r.    Ames,    169   U.    S.    466 

134  U.  S.  418;  Reagan  v.  Farmers'  Smyth   v.   Smith,    169   U.    S.    466 

Loan  (t  Trust  Co.,  154  U.  S.  362;  Smyth  v.  Higginson,  169  U.  S.  466 

New  Memphis  Gas  Light  Co.  v.  City  San   Diego   Land  Co.   v.    National 

of    Memphis,    72    Fed.    Rep.    952;  City,  174  U.  S.  739;  Cotting  v.  Kan- 


RATE    REGULATION. 


The  question  of  regulation  of  rates  by  the  legis- 
lature is  one  that  has  come  up  within  the  last 
thirty  years,  and  has  been  applied  more  frequently 
to  those  public  utilities  which  have  been  more 
frequently  in  use,  such  as  railroads,  slaughter 
houses,  grain  elevators,  water  companies,  etc.,  and 
its  application  to  electric  light  companies  has  only 
recently  been  made,  as  such  companies  are  com- 
paratively new  enterprises. 

However,  the  doctrine  as  to  the  regulation  of 
rates  by  the  legislature,  and  as  to  the  determina- 
tion of  the  reasonableness  of  such  rates  by  the 
courts,  is  apphcable  to  electric  light  and  gas  com- 
panies in  the  same  way  as  it  is  to  railroads,  slaughter 
houses,  elevators,  water,  and  other  public  utilities, 
because  electric  light  and  gas  companies  are  pub- 
lic utilities.  This  proposition  needs  no  argument, 
for  it  is  obvious  from  the  cases  here  cited. 

The  railroad,  water  company,  elevator  and 
slaughter  house  cases,  however,  have  been  cited 
in  some  of  the  few  cases  which  have  arisen  in  re- 
gard to  gas  and  electric  hght  companies. 

sas  City  Stock  Yards  Co.,  183  U.  S.  mestic  Water  Co.  v.  Redlands,  121 

79;  Stanislaus  County  v.  San  Joa-  Cal.  312;  Turner  r.  Revere  Water 

quin  C.  &  I.  Co.,  192  U.  S.  201 ;  Peo-  Co.,  171  Mass.  329;  San  Diego  Land 

pie  V.  Gas  Light  Co.,  45  Barb.  (X.  &  TownCo.^v.  Jasper,  189  U.  S.  439; 

Y.)  136;  stone  v.  Farmers'  Loan  &  People's  Gas  Light  ct  Coke  Co.  v. 

Tru-st  Co.,  116  U.  S.  307;  City  of  Hale,  94  111.  App.  406;  Brymer  v. 

Wilkesbarre  v.   The  Spring  Brook  Butler    Water   Co.,    179    Pa.    231; 

Water  Supply  Co.,  4  Lack.  Leg.  N.  Capitol  City  Gas  Co.  v.  Des  Moines, 

(Pa.)  367;  Redlands  L.  &  C.  Do-  72  Fed.  Rep.  818. 


INTRODUCTOKY.  ( 

In  the  case  of  the  New  Memphis  Gas  Light  Co. 
V.  The  City  of  Memphis,  72  Fed.  Rep.  952  (1896), 
the  city  of  Memphis,  pursuant  to  general  statute, 
reduced  the  rate  to  be  charged  for  gas  to  the 
minimum  fixed  by  the  statute,  without  any  in- 
quiry as  to  whether  such  minimum  was  reason- 
able, and  the  court,  in  enjoining  the  enforcement 
of  such  a  rate  on  the  ground  that  it  was  unrea- 
sonable, cites  certain  of  the  railroad  cases  as  fol- 
lows: Chicago,  M.  &  St.  P.  Ry.  Co.  v.  Minnesota, 
134  U.  S.  418;  Reagan  v.  Farmers'  Loan  &  Trust 
Co.,  154  U.  S.  362. 

Again,  in  Wahaska  Electric  Co.  v.  City  of  Wy- 
more,  60  Neb.  199  (1900),  which  was  an  action  to 
enjoin  the  passing  of  an  ordinance  reducing  the 
rates  for  the  supply  of  electricity,  we  find  the  cita- 
tion of  Munn  v.  Illinois,  94  U.  S.  113  (an  elevator 
case).  Also  Spring  Valley  Water  Works  v.  Schott- 
ler,  110  U.  S.  347  (a  water  company  case).  Also 
Spring  Valley  Water  Works  v.  Bartlett,  16  Fed. 
Rep.   615   (another  water  company  case). 

Again,  in  Cincinnati,  Hamilton  &  Dayton  Rail- 
way Co.  Y.  Village  of  Bowling  Green,  57  Ohio  St. 
336  (1897),  which  was  an  electric  light  case,  we 
find  the  citation  of  Munn  v.  Illinois,  94  U.  S.  113 
(elevator  case);  also  Spring  Valley  Water  Works 
V.  Schottler,  110  U.  S.  347  (water  case). 

The  more  recent  cases  in  the  United  States  Su- 
preme Court,  running  back  for  the  past  seven  or 


O  RATE    KEGULATION. 

eight  years,  on  this  question  of  regulation  of  rates 
for  pubHc  utiUties,  deal  with  railroad  cases,  slaugh- 
ter house  cases  and  water  cases. 

However,  it  is  perfectly  obvious  that  the  same 
principles  applied  in  those  cases  would  apply  in 
the  case  of  a  gas  and  electric  light  company,  be- 
cause those  cases  and  the  gas  and  electric  light 
company  cases  are   analogous. 

Several  bills  are  now  pending  in  the  Fifty -ninth 
Congress,  the  object  of  each  of  which  is  to  provide 
a  method  of  regulating  by  law  freight  rates  charged 
by  railroads  engaged  in  interstate  commerce.  It 
is  not  unlikely  that  in  consequence  of  public  in- 
terest aroused  on  this  subject,  some  law  will  be 
passed  looking  to  that  result.  The  Congress  has 
express  authority  to  regulate  commerce  among  the 
several  states,  but  such  power  is  subject  to  various 
constitutional  limitations  upon  its  exercise.  The 
most  obvious  of  such  limitations  is  the  prohibition 
to  take  a  person's  property  without  due  process 
of  law,  or  for  public  use  without  just  compensa- 
tion, or  to  give  a  preference  to  the  ports  of  one 
city  over  those  of  another,  but  within  such  limita- 
tions the  principle  of  regulation  of  railway  rates 
by  Congress  is  substantially  the  same  as  that  of 
regulation  of  like  rates  within  the  limits  of  any 
particular  state  by  its  own  legislature. 


PART  II. 

THE  BASIS  WHICH  THE  COURTS  HAVE  ADOPTED  IN 
DETERMINING  THE  REASONABLENESS  OF  RATES 
AS    FIXED    BY  THE    LEGISLATURE. 

We  have  seen  that  the  legislature  has  the  power 
to  regulate  rates  for  public  utilities  and  that  such 
regulation  is  subject  to  the  limitation  that  it  must 
be  reasonable. 

The  question  of  the  reasonableness  of  a  rate  of 
charge  for  a  public  utility,  involving,  as  it  does, 
the  element  of  reasonableness,  both  as  regards  the 
corporation  or  individual  supplying  the  public 
utility  and  the  public,  is  eminently  a  question 
for  judicial  investigation  and  determination.  The 
courts  have  accordingly  assumed  the  duty  of  say- 
ing whether  a  rate  fixed  by  the  legislature  is  a 
reasonable  regulation.^  In  testing  the  reasonable- 
ness of  a  rate  fixed  by  the  legislature,  the  courts 
consider  the  facts  in  each  case  and  no  hard  and 
fast    rule    can    be    laid    down.     The    presumption 

'  People's  Gas  Light  &  Coke  Co.  Capitol  City  Gas  Co.  v.  Des  Moines, 
V.  Hale,  94  111.  App.  406;  Brymer  72  Fed.  Rep.  818;  Smyth  r.  Ames, 
^■.  Butler  Water  Co.,   179  Pa.  231;    169  U.  S.  466. 

'       9 


10  RATE    REGULATION. 

exists  that  the  rates  fixed  by  the  legislature  are 
reasonable. 

In  attempting  to  formulate  a  basis  to  test  the 
reasonableness  of  rates,  we  are  met  with  the  dec- 
laration of  the  United  States  Supreme  Court  as  re- 
cently as  1901,  in  one  of  the  most  recent  cases  on 
the  subject,  in  the  language  of  Mr.  Justice  Brewer 
in  Cotting  v.  Kansas  City  Stock  Yards  Company, 
183  U.  S.  79,  after  reviewing  the  railroad,  slaughter 
house,  elevator  and  water  cases,   as  follows: 

"In  the  light  of  these  quotations,  this  may 
be  affirmed  to  be  the  present  scope  of  the 
decisions  of  this  court  in  respect  to  the  power 
of  the  legislature  in  regulating  rates:  As  to 
those  individuals  and  corporations  who  have 
devoted  their  property  to  a  use  in  which  the 
public  has  an  interest,  although  not  engaged 
in  a  work  of  a  confessedly  public  character, 
there  has  been  no  further  ruling  than  that  the 
state  may  prescribe  and  enforce  reasonable 
charges.  "^What  shall  be  the  test  of  reason- 
ableness in  those  charges  is  absolutely  un- 
disclosed." 

In  Smyth  v.  Ames,  169  U.  S.  466  (1897),  in 
which  case  the  United  States  Supreme  Court  af- 
firmed the  decree  of  the  Circuit  Court  enjoining  the 
enforcement  of  certain  rates,  on  the  ground  that 
they  were  unreasonable,  Mr.  Justice  Harlan,  de- 
livering the  opinion  of  the  court,  at  page  546,  laid 


BASIS    WHICH    COURTS    HAVE    ADOPTED.  11 

down  the  following  as  a  basis  upon  which  to  de- 
termine the  reasonableness  of  rates: 

"We  hold,  however,  that  the  basis  of  all 
calculations  as  to  the  reasonableness  of  rates 
to  be  charged  by  a  corporation  maintaining  a 
highway  under  legislative  sanction  must  be 
the  fair  value  of  the  property  being  used  by  it 
for  the  convenience  of  the  public.  And  in 
order  to  ascertain  that  value,  the  original  cost 
of  construction,  the  amount  expended  in  per- 
manent inprovements,  the  amount  in  market 
value  of  its  bonds  and  stock,  the  present  as 
compared  with  the  original  cost  of  construc- 
tion, the  probable  earning  capacity  of  the 
property  under  particular  rates  prescribed  hy 
statute,  and  the  sum  required  to  meet  operat- 
ing expenses,  are  all  matters  for  consideration 
and  are  to  be  given  such  weight  as  may  be 
just  and  right  in  each  case.  We  do  not  say 
that  there  may  not  be  other  matters  to  be 
regarded  in  estimating  the  value  of  property. 
What  the  company  is  entitled  to  ask  is  a  fair 
return  upon  the  value  of  that  which  it  em- 
ploys for  the  pul:>Uc  convenience.  On  the  other 
hand,  what  the  public  is  entitled  to  demand  is 
that  no  more  be  exacted  from  it  for  the  use  of 
the  public  highway  than  the  services  ren- 
dered by  it  are  reasonably  worth." 

It  must  be  borne  in  mind  that  the  court  has  no 
power  in  passing  upon  the  reasonableness  of  a  rate 
to  say  what  would  be  a  reasonable  rate,  but  it  only 


12  KATE    REGULATION. 

has  the  power  to  say  whether  or  not  the  rate  fixed 
b}^  the  legislature  is  or  is  not  reasonable/ 

The  same  basis  is  laid  down  in  San  Diego  Land 
Co.  V.  National  City,  174  U.  S.  739  (1898),  a  digest 
of  which  is  found  in  this  volume. 

See  also  basis  laid  down  in  Stanislaus  Co.  v. 
San  Joaquin  C.  &  I.  Co.,  192  U.  S.  201  (1903),  a 
digest  of  which  is  found  in  this  volume. 

We  are,  therefore,  brought  to  the  formulation  of  a 
basis  which  might  be  adopted  in  the  case  of  a  gas 
or  electric  light  company,  and,  in  the  light  of  these 
decisions,  it  would  seem  to  be  somewhat  as  follows : 

The  basis  must  be  the  fair  value  of  the  prop- 
erty being  used  l^y  it  for  the  convenience  of  the 
public  and,  in  order  to  ascertain  that  value,  the 
original  cost  of  construction,  the  amount  expended 
in  permanent  improvements,  the  amount  in  market 
value  of  its  bonds  and  stock,  the  present  as  com- 
pared with  the  original  cost  of  construction,  the 
probable  earning  capacity  of  the  property,  and  the 
particular  rates  prescribed  by  statute,  and  the  sum 
required  to  meet  the  operating  expenses. 

How  much  per  cent  on  such  a  basis  the  court 
might  say  is  a  reasonable  return  no  one  can  say. 
If  the  legislature  fixed  a  rate  which  does  not  bring 
a  fair  and  reasonal:>le  return  on  such  a  basis,  then 
it  is  most  likely  that  the  courts  would  enjoin  the 
enforcement  of  such  rate. 

1  Smyth  r.  Ames,  169  U.  S.  466. 


BASIS    WHICH    COURTS    HAVE    ADOPTED.  13 

In  the  case  of  Stanislaus  Co.  v.  Sa7i  Joaquin  C, 
&  I.  Co.,  192  U.  S.  201  (1903),  a  water  case,  it  was 
held  that  a  rate  fixed  so  as  to  give  an- income  of 
six  per  cent  per  annum  upon  the  then  vahie  of  the 
propert}^  actually  used  for  the  purpose  of  supply- 
ing water  as  provided  by  law,  even  though  the 
company  had  prior  thereto  been  allowed  to  fix  rates 
that  would  secure  to  it  one  and  one-half  per  cent 
a  month  income  upon  the  capital  actually  invested 
in  the  undertaking,  was  not  unreasonable  and  did 
not  amount  to  confiscation  nor  taking  of  property 
without  due  process  of  law  nor  denial  of  equal 
protection  of  the  lav/s. 

In  conclusion,  it  may  be  said  that  there  are  few 
decisions  as  to  a  basis  which  should  be  adopted  in 
determining  the  reasonableness  of  rates  and  these 
decisions  have  been   cited  here. 

Following  the  principles  laid  down  in  these  de- 
cisions, the  adoption  of  a  basis  must  be  determined 
by  the  facts  existing  in  each  particular  case. 


PART  III. 

THE    MORE    IMPORTANT    CASES    DIGESTED. 

We  have  seen  that  in  the  early  development  of 
the  question  of  rate  regulation  the  question  as  to 
whether  the  legislature  had  the  power  to  regulate 
rates  was  first  determined'  and  then  that  this  power 
to  regulate  was  limited  to  a  reasonable  regulation.^ 

In  order  that  my  readers  may  follow  this  process 
of  development  and  examine  the  facts  in  particular 
cases,  I  have  arranged  here  a  digest  of  the  more 
important  cases. 

I  have  begun  with  the  pioneer  case  of  Munn 
V.  Illinois,  to  which  I  have  drawn  attention  else- 
where, and  have  endeavored  to  arrange  such  cases 
as  I  have  digested  in  chronological  order. 

While  Munn  v.  Illinois,  has  remained  an  au- 
thority controlling  the  proposition  that  the  legis- 
lature may  regulate  the  rates  which  may  be  charged 
by  those  engaged  in  supplying  public  utihties,  the 
Supreme  Court  of  the  United  States  has  not  ad- 

iMunn  V.  Illinois,  94  U.  S.  113;  Railroad  Co.,  and  Lawrence  r.  same, 

Chicago,  Burlington  &  Quincy  Rail-  94  U.  S.  164. 

road  Co.  v.   Iowa,   94  U.   S.    155;  2  Smyth  v.  Ames,  169  U.  S.  466. 
Peik   V.    Chicago    &    Northwestern 

u 


THE    MORE    IMPORTANT    CASES    DIGESTED.  15 

hered  to  the  doctrine  that  the  rates  fixed  by  the 
legislature  may  not  be  reviewed  by  the  courts  as 
to  the  reasonableness  of  such  rates. 

The  question  squarely  before  the  court  in  Muiin 
V.  Illinois  was  not  as  to  whether  the  rates  were 
reasonable  but  as  to  whether  the  legislature  had 
any  right  at  all  to  regulate  the  charge  which  may 
be  made  by  warehouses. 

This  case  was  the  first  time  that  the  question  of 
such  regulation  was  ever  before  the  United  States 
Supreme  Court  and  it  has  been  followed  and  cited 
in  numerous  subsequent  decisions  upon  the  propo- 
sition that  the  legislature  has  power  to  regulate 
the  charges  which  may  be  made  for  the  supply  of 
such  public  utilities. 

MuiXN  V.  Illinois,  94  U.  S.  113  (1876). 

In  this  case  the  legislature  of  Illinois  enacted  a 
law  prescribing  the  rates  for  charges  of  warehouses. 
Criminal  proceedings  w^ere  taken  against  the  plain- 
tiff, as  the  owner  of  the  warehouse,  for  violation  of 
the  statute.  The  Supreme  Court  of  Illinois  held 
that  the  statute  was  valid  and  constitutional,  and 
that  the  legislature  had  the  right  to  regulate  the 
charges. 

From  the  judgment  of  the  Supreme  Court  of 
Illinois  an  appeal  was  taken  to  this  court. 

Mr.  Chief  Justice  Waite,  in  delivering  the  opin- 
ion of  the  court,   affirming  the  judgment  of  the 


16  RATE    REGULATION. 

Supreme  Court  of  Illinois,  declaring  the  act  con- 
stitutional,  said,   at  p.    125: 

''In  their  exercise  it  has  been  customary  in 
England  from  time  immemorial,  and  in  this 
country  from  its  first  colonization  to  regulate 
ferries,  common  carriers,  hackmen,  bakers, 
millers,  wharfingers,  innkeepers,  etc.,  and  in 
so  doing  to  fix  a  maximum  of  charge  to  be  made 
for  services  rendered,  accommodations  fur- 
nished and  articles  sold.  To  this  day  statutes 
are  to  be  found  in  many  of  the  states  upon 
some  or  all  these  subjects;  and  we  think  it  has 
never  yet  been  successfully  contended  that 
such  legislation  came  within  any  of  the  con- 
stitutional prohibitions  against  interference 
with  private  property.  With  the  Fifth  Amend- 
ment in  force,  Congress,  in  1820,  conferred 
power  upon  the  city  of  Washington  'to  regu- 
late .  .  .  the  rates  of  wharfage  at  pri- 
vate wharves,  ...  the  sweeping  of  chim- 
neys, and  to  fix  the  rates  of  fees  therefor, 
.  .  .  and  the  weight  and  quality  of  bread,' 
3  Stat.  587,  sec.  7;  and,  in  1848,  'to  make 
all  necessary  regulations  respecting  hackney 
carriages  and  the  rates  of  fare  of  the  same, 
and  the  rates  of  hauling  by  cartmen,  wagoners, 
carmen,  and  draymen,  and  the  rates  of  com- 
mission of  auctioneers,'  9  id.  224,  sec.  2. 

"  From  this  it  is  apparent  that,  down  to  the 
time  of  the  adoption  of  the  Fourteenth  Amend- 
ment, it  was  not  supposed  that  statutes  regu- 
lating the  use,  or  even  the  price  of  the  use,  of 


THE    MOKE    IMPORTANT    CASES    DIGESTED.  17 

private  property  necessarily  deprived  an  owner 
of  his  property  without  due  process  of  law. 
Under  some  circumstances  they  may,  but  not 
under  all.  The  Amendment  does  not  change 
the  law  in  this  particular;  it  simply  prevents 
the  states  from  doing  that  which  will  operate 
as  such  a  deprivation. 

''This  brings  us  to  inquire  as  to  the  princi- 
ples upon  which  this  power  of  regulation  rests, 
in  order  that  we  may  determine  what  is  within 
and  what  without  its  operative  effect.  Look- 
ing, then,  to  the  common  law,  from  whence 
came  the  right  which  the  Constitution  protects, 
we  find  that  when  private  property  is  '  affected 
with  a  public  interest  it  ceases  to  be  juris 
privati  only.'  This  was  said  by  Lord  Chief 
Justice  Hale  more  than  two  hundred  years 
ago,  in  his  treatise,  De  Portibus  Maris,  1  Harg. 
Law  Tracts,  78,  and  has  been  accepted  with- 
out objection  as  an  essential  element  in  the 
law  of  property  ever  since.  Property  does 
become  clothed  with  a  public  interest  when 
used  in  a  manner  to  make  it  of  public  conse- 
quence, and  affect  the  community  at  large. 
When,  therefore,  one  devotes  his  property  to 
a  use  in  which  the  public  has  an  interest,  he, 
in  effect,  grants  to  the  public  an  interest  in 
that  use,  and  must  submit  to  be  controlled  by 
the  public  for  the  common  good,  to  the  ex- 
tent of  the  interest  he  has  thus  created.  He 
may  withdraw  his  grant  by  discontinuing  the 
use;  but,  so  long  as  he  maintains  the  use,  he 
must  submit  to  the  control." 


18  RATE    REGULATION. 

Again,  at  p.  127,  the  court  said: 

''And  the  same  has  been  held  as  to  ware- 
houses and  warehousemen.  In  Aldnutt  v. 
Inglis,  12  East,  527,  decided  in  1810,  it  ap- 
peared that  the  London  Dock  Company  had 
built  warehouses  in  which  wines  were  taken 
in  store  at  such  rates  of  charge  as  the  com- 
pan}^  and  the  owners  might  agree  upon.  Af- 
terwards the  company  obtained  authority, 
under  the  general  warehousing  act,  to  receive 
wines  from  importers  before  the  duties  upon 
the  importation  were  paid;  and  the  question 
was,  whether  they  could  charge  arbitrary  rates 
for  such  storage,  or  must  be  content  with  a 
reasonable  compensation.  Upon  this  point 
Lord  Ellenborough  said   (p.  537): 

"  'There  is  no  doubt  that  the  general 
principle  is  favored,  both  in  law  and  justice, 
that  every  man  may  fix  what  price  he  pleases 
upon  his  own  property,  or  the  use  of  it;  but 
if  for  a  particular  purpose  the  pubhc  have  a 
right  to  resort  to  his  premises  and  make  use 
of  them,  and  he  have  a  monopoly  in  them 
for  that  purpose,  if  he  will  take  the  benefit  of 
that  monopoly,  he  must,  as  an  equivalent, 
perform  the  duty  attached  to  it  on  reason- 
able terms.  The  question  then  is,  whether, 
circumstanced  as  this  company  is,  by  the 
combination  of  the  warehousing  act  with  the 
act  bv  which  they  were  originally  consti- 
tuted," and  with  the  actually  existing  state 
of  things  in  the  port  of  London,  whereby 


THE    MORE    IMPORTANT    CASES    DIGESTED.  19 

they  alone  have  the  warehousing  of  these 
wmes,  they  be  not,  according  to  the  doc- 
trine of  Lord  Hale  obhged  to  hmit  them- 
selves to  a  reasonable  compensation  for  such 
warehousing.  And,  according  to  him,  when- 
ever the  accident  of  time  casts  upon  a  party 
the  benefit  of  having  a  legal  monopoly  of 
landing  goods  in  a  public  port,  as  where  he 
is  the  owner  of  the  only  wharf  authorized 
to  receive  goods  which  happens  to  be  built 
in  a  port  newly  erected,  he  is  confined  to 
take  reasonable  compensation  only  for  the 
use  of  the  wharf.'  " 

Again,  at  p.  131,  the  court  further  said: 

"Under  such  circumstances  it  is  difficult  to 
see  why,  if  the  common  carrier,  or  the  miller, 
or  the"^  ferryman,  or  the  innkeeper,  or  the 
wharfinger,  or  the  baker,  or  the  cartman,  or 
the  hackney  coachman,  pursues  a  pul^lic  em- 
ployment and  exercises  'a  sort  of  public  office,' 
these  plaintiffs  in  error  do  not.  They  stand, 
to  use  again  the  language  of  their  counsel,  in 
the  very  'gateway  of  commerce,'  and  take  toll 
from  all  who  pass.  Their  business  most  cer- 
tainly 'tends  to  a  common  charge,  and  is  be- 
come a  thing  of  public  interest  and  use.'  Every 
bushel  of  grain  for  its  passage  '  pays  a  toll, 
which  is  a  common  charge,'  and,  therefore, 
according  to  Lord  Hale,  every  such  ware- 
houseman '  ought  to  be  under  public  regu- 
lation, viz.,   that  he     .     .     .     take  but    rea- 


20  RATE    REGULATION. 

sonable  toll.'  Certainty,  if  any  business  can 
be  clothed  'with  a  public  interest,  and  cease 
to  be  juris  privati  only/  this  has  been.  It 
may  not  be  made  so  b}^  the  operation  of  the 
constitution  of  Illinois  or  this  statute,  but  it 
is  by  the  facts." 

Again,  at  p.  133,  the  court  said: 

'^Neither  is  it  a  matter  of  an}^  moment  that 
no  precedent  can  be  found  for  a  statute  pre- 
cisely like  this.  It  is  conceded  that  the  busi- 
ness is  one  of  recent  origin,  that  its  growth 
has  been  rapid,  and  that  it  is  already  of  great 
importance.  And  it  must  also  be  conceded 
that  it  is  a  business  in  which  the  whole  public 
has  a  direct  and  positive  interest.  It  presents, 
therefore,  a  case  for  the  application  of  a  long- 
known  and  well-established  principle  in  social 
science,  and  this  statute  simply  extends  the 
law  so  as  to  meet  this  new  development  of 
commercial  progress.  There  is  no  attempt  to 
compel  these  owners  to  grant  the  public  an 
interest  in  their  property,  but  to  declare  their 
obligations  if  they  use  it  in   this  particular 


''  It  is  insisted,  however,  that  the  owner  of 
property  is  entitled  to  a  reasonable  compensa- 
tion for  its  use,  even  though  it  be  clothed  with 
a  public  interest,  and  that  what  is  reasonable 
is  a  judicial  and  not  a  legislative  question. 


THE    MORE    IMPORTANT    CASES    DIGESTED.  21 

''  As  has  already  been  shown,  the  practice 
has  been  otherwise.  In  countries  where  the 
common  law  prevails,  it  has  been  customar}^ 
from  time  immemorial  for  the  legislature  to 
declare  what  shall  be  a  reasonable  compensa- 
tion under  such  circumstances,  or,  perhaps 
more  properly  speaking,  to  fix  a  maximum 
beyond  which  any  charge  made  would  be  un- 
reasonable. Undoubtedly,  in  mere  private 
contracts,  relating  to  matters  in  which  the 
public  has  no  interest,  what  is  reasonable  must 
be  ascertained  judicially.  But  this  is  because 
the  legislature  has  no  control  over  such  a  con- 
tract. 

''So,  too,  in  matters  which  do  affect  the 
public  interest,  and  as  to  which  legislative 
control  may  be  exercised,  if  there  are  no 
statutory  regulations  upon  the  subject,  the 
courts  must  determine  what  is  reasonable. 
The  controlling  fact  is  the  power  to  regulate 
at  all.  If  that  exists,  the  right  to  establish 
the  maximum  of  charge,  as  one  of  the  means 
of  regulation,  is  implied.  In  fact,  the  common- 
law  rule,  which  requires  the  charge  to  be  rea-  ^ 
sonable,  is  itself  a  regulation  as  to  price.  With- 
out it  the  owner  could  make  his  rates  at  will; 
and  compel  the  public  to  yield  to  his  terms, 
or  forego  the  use." 

At  p.  134  the  following  language  was  found  in 
the  opinion  of  the  court: 

''We  know  that  this  is  a  power  which  may 


22  RATE    REGULATIOX. 

be  abused;  but  that  is  no  argument  against 
its  existence.  For  protection  against  abuses 
by  legislatures  the  people  must  resort  to  the 
polls,  not  to  the  courts." 

There   is   a   strong   dissenting   opinion   by   Jus- 
tices Field  and  Strong. 


Chicago,  Burlixgtox  &  Quixcy  Railroad  Co. 
V.  Iowa,  94  U.  S.  155  (1876). 
In  this  case  the  railroad  sought  to  enjoin  the 
enforcement  of  rates  which  had  been  fixed  by  the 
legislature  for  carrs'ing  passengers  and  freight. 
The  court,  in  following  the  doctrine  laid  down  in 
Munn  V.  Illinois,  94  U.  S.  113,  affirmed  the  decree 
of  the  lower  court  dismissing  the  bill  of  complaint 
and  denying  the  injunction.  Mr.  Chief  Justice 
Waite,  in  delivering  the  opinion  of  the  court,  said, 
at  p.  161: 

''Railroad  companies  are  carriers  for  hire. 
They  are  incorporated  as  such  and  given  ex- 
traordinary powers  in  order  that  they  may 
the  ])etter  serve  the  public  in  that  capacity. 
They  are  therefore  engaged  in  a  public  em- 
plo^^ment  affecting  the  public  interests,  but 
under  the  decision  in  Munn  v.  Illinois,  supra, 
p.  113,  subject  to  legislative  control  as  to  their 
rates  of  fare  and  freight  unless  protected  b}^ 
their  charters." 


THE    MOKE    IMPORTANT    CASES    DIGESTED.  23 

Again,  at  p.   164: 

''It  is  very  clear  that  a  uniform  rate  of 
charges  for  all  railroad  companies  in  the  state 
might  operate  unjustly  upon  some.  It  was 
proper  therefore  to  provide  in  some  way  for 
an  adaptation  of  the  rates  to  the  circumstances 
of  the  different  roads;  and  the  General  Assem- 
bly in  the  exercise  of  its  legislative  discretion 
has  seen  fit  to  do  this  by  a  system  of  classifica- 
tion. Whether  this  was  the  best  that  could 
have  been  done  is  not  for  us  to  decide.  Our 
j)rovince  is  only  to  determine  whether  it  could 
be  done  at  all  under  the  circumstances.  If 
it  could,  the  legislature  must  decide  if  it  is 
subject  to  any  control  from  us — whether  the 
common  good  requires  that  it  should  l)e 
done." 

Peik  v.  Chicago  &  Northwestern  Railroad 
Co.;  Lawrence  v.  same,  94  U.  S.  164  (1876). 

In  this  case  the  stockholders  and  bondholders 
sought  to  restrain  the  railroad  companies  from 
obeying  the  railroad  commissioners  as  to  rates 
which  had  been  fixed  pursuant  to  legislative  au- 
thority, also  to  enjoin  the  Attorney  General  from 
enforcing  such  rates. 

The  court  held  that  the  legislature  had  the  power 
to  fix  the  rates  and  followed  the  doctrine  laid  down 
in  Miimi  v.  Illinois,  94  U.  S.  113,  and  Chicago  &c. 
R.  R.  V.  Iowa,  94  U.  S.  155. 


24  RATE    REGULATION. 

Mr.  Chief  Justice  Waite,  in  delivering  the  opin- 
ion of  the  court  affirming  the  decrees,  said  at  p.  176: 

'^In  Munn  v.  Illinois,  supra,  page  113,  and 
Chicago,  Burlington  &  Quincy  Railroad  Co.  v. 
Iowa,  supra,  page  155,  we  decided  that  the 
state  may  limit  the  amount  of  charges  of  rail- 
road companies  for  fares  and  freights  unless 
restrained  by  some  contract  in  the  charter, 
even  though  their  income  may  have  been 
pledged  as  security  for  the  payment  of  obliga- 
tions incurred  upon  the  faith  of  the  charter. 
So  far  this  case  is  disposed  of  by  those  de- 
cisions." 

Again,  at  p.  178,  the  court  said: 

'^As  to  the  claim  that  the  courts  must  de- 
cide what  is  reasonable  and  not  the  legislature. 
This  is  not  new  to  this  case.  It  has  been  fully 
considered  in  Mu7in  v.  Illinois  where  property 
has  been  clothed  with  the  public  interest  the 
legislature  may  fix  a  limit  to  that  which  shall 
in  law  be  reasonable  to  its  use.  This  limit 
binds  the  courts  as  well  as  the  people.  If  it 
has  been  improperly  fixed  the  legislature,  not 
the  courts,  must  be  appealed  to  for  the  change." 

Chicago,  Milwaukee  &  St.  Paul  Railway  Co. 
V.  Minnesota,  134  U.  S.  418  (1889). 
In  this  case  the  legislature  had  designated  a 
Board  of  Commissioners  to  fix  rates  of  railroads 
and  warehouses.  The  board,  pursuant  to  the  legis- 
lative act  of  Minnesota,  reduced  the  charges  of  the 


THE    MORE    IMPORTANT    CASES    DIGESTED.  25 

railroad  for  carrying  milk  from  three  cents  to  two 
and  one-half  cents  a  gallon.  Upon  a  refusal  of 
the  railroad  to  comply  with  such  reduction  a  writ 
of  mandamus  was  brought  in  the  Supreme  Court, 
and  judgment  was  awarded  against  the  railroad 
company. 

The  railroad  company  then  appealed  to  the  Su- 
preme Court  of  the  United  States,  and  Mr.  Jus- 
tice Blatchford,  in  delivering  the  opinion  of  the 
court,  reversing  the  judgment  of  the  Supreme 
Court  of  Minnesota,  said,  at  p.  456: 

'^This  being  the  construction  of  the  statute 
by  which  we  are  bound  in  considering  the 
present  case,  we  are  of  opinion  that,  so  con- 
strued, it  conflicts  with  the  Constitution  of  the 
United  States  in  the  particulars  complained 
of  b}^  the  railroad  company.  It  deprives  the 
company  of  its  right  to  a  judicial  investiga- 
tion, by  due  process  of  law,  under  the  forms 
and  with  the  machinery  provided  by  the  wis- 
dom of  successive  ages  for  the  investigation 
judicially  of  the  truth  of  a  matter  in  contro- 
versy, and  substitutes  therefor,  as  an  absolute 
finality,  the  action  of  a  railroad  commission 
which,  in  view  of  the  powers  conceded  to  it 
by  the  state  court,  cannot  be  regarded  as 
clothed  with  judicial  functions  or  possessing 
the  machinery  of  a  court  of  justice." 

Again,  the  court  said,  at  p.  458: 

''The  question  of  the  reasonableness  of  a 


26  KATE    REGULATION. 

rate  of  charge  for  transportation  by  a  railroad 
company,  involving  as  it  does  the  element  of 
reasonableness  both  as  regards  the  company 
and  as  regards  the  public,  is  eminently  a  ques- 
tion for  judicial  investigation,  requiring  due 
process  of  law  for  its  determination.  If  the 
company  is  deprived  of  the  power  of  charging 
reasonable  rates  for  the  use  of  its  property, 
and  such  deprivation  takes  place  in  the  ab- 
sence of  an  investigation  by  judicial  machinery, 
it  is  deprived  of  the  lawful  use  of  its  property, 
and  thus,  in  substance  and  effect,  of  the  prop- 
erty itself,  without  due  process  of  law  and  in 
violation  of  the  Constitution  of  the  United 
States;  and  in  so  far  as  it  is  thus  deprived, 
while  other  persons  are  permitted  to  receive 
reasonable  profits  upon  their  invested  capital, 
the  company  is  deprived  of  the  equal  protec- 
tion of  the  laws." 

Three  of  the  justices  of  the  Supreme  Court  dis- 
sented from  the  opinion  of  the  court,  and  held  that 
the  legislature,  or  its  agents,  had  the  right  to  fix 
rates  and  that  such  rates  were  conclusive.  The 
dissenting  opinion  also  stated  that  the  judgment 
of  the  court  in  this  case  practically  overruled  Munn 
V.  Illinois,  94  U.  S.  113. 

Reagan  v.  Farmers'  Loan  &   Trust  Company, 

154  U.  S.  362  (1894). 

In  this  case  one  of  the  questions  presented  to  the 

court  was  as  to  whether  certain  rates  for  carrying, 

which  had  been  fixed  by  a  railroad  commission  which 


THE    MORE    IMPORTANT    CASES    DIGESTED.  27 

was  created  by  an  act  of  the  legislature  of  Texas 
and  authorized  to  fix  such  rates,  were  reasonable. 
The  court;  after  reviewing  the  decisions  of  this 
court  upon  the  subject  of  the  regulation  of  rail- 
road rates  by  the  legislature  and  bodies  created  by 
it,  held  that  the  legislature  had  the  power  to  create 
such  a  board  and  that  such  board  had  the  power 
to  fix  such  rates,  but  the  question  as  to  the  rea- 
sonableness of  such  rates  was  one  to  be  determined 
by  the  courts.  This  court,  in  affirming  that  part 
of  the  decree  of  the  Circuit  Court  of  the  United 
States  for  the  Western  District  of  Texas,  which 
enjoined  the  enforcement  of  the  rates  fixed  by  the 
railroad  commission  on  the  ground  that  they  were 
unreasonable,  said,  at  p.  396: 

^^It  appears  from  the  bill  that  in  pursuance 
of  the  powers  given  to  it  by  this  act,  the  state 
commission  has  made  a  body  of  rates  for  fares 
and  freights.  This  body  of  rates  as  a  whole 
is  challenged  by  the  plaintiff  as  unreasonable, 
unjust  and  working  a  destruction  of  its  rights 
of  property.  The  defendant  denies  the  power 
of  the  court  to  entertain  an  inquiry  into  that 
matter,  insisting  that  the  fixing  of  rates  for 
carriage  l)y  a  public  carrier  is  a  matter  wholly 
within  the  power  of  the  legislative  depart- 
ment of  the  government  and  ]:)eyond  examina- 
tion by  the  courts.  It  is  doubtless  true  as  a 
general  proposition  that  the  formation  of  a 
tariff  of  charges  for  the  transportation  by  a 


28  RATE    REGULATION. 

common  carrier  of  persons  or  property  is  a 
legislative  or  administrative  rather  than  a  ju- 
dicial function.  Yet  it  has  always  been  recog- 
nized that  if  a  carrier  attempted  to  charge  a 
shipper  an  unreasonable  sum,  the  courts  had 
jurisdiction  to  inquire  into  that  matter  and  to 
award  to  the  shipper  any  amount  exacted 
from  him  in  excess  of  a  reasonable  rate;  and 
also  in  a  reverse  case  to  render  judgment  in 
favor  of  the  carrier  for  the  amount  found  to  be 
a  reasonable  charge.  The  province  of  the 
courts  is  not  changed  nor  the  limit  of  judicial 
inquiry  altered  because  the  legislature,  in- 
stead of  the  carrier,  prescribes  the  rates.  The 
courts  are  not  authorized  to  revise  or  change 
the  body  of  rates  imposed  by  a  legislature  or 
a  commission;  the}"  do  not  determine  whether 
one  rate  is  preferable  to  another  or  what  under 
all  circumstances  would  be  fair  and  reasonable 
as  betw^een  the  carriers  and  the  shippers;  they 
do  not  engage  in  any  mere  administrative 
work;  but  still  there  can  be  no  doubt  of  their 
power  and  dut}^  to  inquire  whether  a  body  of 
rates  prescribed  by  a  legislature  or  a  commis- 
sion is  unjust  and  unreasonable  and  such  as  to 
work  a  practical  destruction  to  rights  of  prop- 
erty and,  if  found  so  to  be,  to  restrain  its 
operation." 

Citing  Chicago,  Burlington  &  Quincy  R.  R.  Co. 
V.  loiva,  94  U.  S.  155,  and  Peik  v.  Chicago  &  North- 
western Rij.,  94  U.  S.  164. 

''     ...     There  was  in  those  cases  no  de- 


THE    MORE    IMPORTANT    CASES    DIGESTED.  2D 

cision  as  to  the  extent  of  control,  but  only  as 
to  the  right  of  control.  This  question  came 
again  before  this  court  in  Railroad  Commissioti 
cases,  116  U.  S.  307,  331,  and,  while  the  right 
of  control  was  reaffirmed,  a  limitation  on  that 
right  was  plainly  intimated  in  the  following 
words  of  the  Chief  Justice:  'From  what  has 
thus  been  said  it  is  not  to  be  inferred  that  this 
power  of  limitation  or  regulation  is  itself  with- 
out limit.  This  power  to  regulate  is  not  a 
power  to  destroy,  and  hmitation  is  not  the 
equivalent  of  confiscation.  Under  pretense  of 
regulating  fares  and  freights,  the  state  cannot 
require  a  railroad  corporation  to  carry  persons 
or  property  without  reward;  neither  can  it  do 
that  which  in  law  amounts  to  a  taking  of 
private  property  for  public  use  without  just 
compensation  or  without  due  process  of  law.'  " 

Again,  at  p.  398: 

''The  question  of  the  reasonableness  of  a 
rate  of  charge  for  transportation  by  a  railroad 
company  involving  as  it  does  the  element  of 
reasonableness  both  as  regards  the  company 
and  as  regards  the  public,  is  eminently  a  ques- 
tion for  judicial  investigation  requiring  the 
process  of  law  for  its  determination." 

Again,  at  p.  399: 

"These  cases  all  support  the  proposition 
that,  while  it  is  not  the  province  of  the  courts 


oO  RATE    REGULATION. 

to  enter  upon  the  merely  administrative  dut}^ 
of  framing  a  tariff  of  rates  for  carriage,  it  is 
within  the  scope  of  judicial  power  and  a  part 
of  judicial  duty  to  restrain  anything  which  in 
the  form  of  a  regulation  of  rates  operates  to 
deny  to  the  owners  of  property  invested  in  the 
business  of  transportation  that  equal  protec- 
tion which  is  the  constitutional  right  of  all 
owners  of  other  property.  There  is  nothing 
new  or  strange  in  this.  It  has  always  been  a 
part  of  the  judicial  function  to  determine 
whether  the  act  of  one  party  (whether  that 
party  be  a  single  individual,  an  organized  body 
or  the  public  as  a  whole)  operates  to  divest  the 
other  party  of  any  rights  of  person  or  property. 
In  every  constitution  is  the  guarantee  against 
the  taking  of  private  propert}^  for  public  pur- 
poses without  just  compensation.  The  equal 
protection  of  the  laws,  which,  by  the  Four- 
teenth Amendment,  no  state  can  deny  to  the 
individual,  forbids  legislation,  in  whatever 
form  it  may  be  enacted,  by  which  the  property 
of  one  individual  is,  without  compensation, 
wrested  from  him  for  the  benefit  of  another  or 
of  the  public.  This,  as  has  been  often  ob- 
served, is  a  government  of  law  and  not  a  gov- 
ernment of  men,  and  it  must  never  be  for- 
gotten that  under  such  a  government,  with  its 
constitutional  limitations  and  guarantees,  the 
forms  of  law  and  the  machinery  of  govern- 
ment with  all  their  reach  and  power  must  in 
their  actual  workings  stop  on  the  hither  side 
of  the  unnecessary  and  uncompensated  taking 
or  destruction  of  any  private  property  legally 


THE    MORE    IMPORTANT    CASES    DIGESTED.  31 

acquired  and  legally  held.  It  was  therefore 
within  the  competency  of  the  Circuit  Court  of 
the  United  States  for  the  Western  District  of 
Texas,  at  the  instance  of  the  plaintiff,  a  citi- 
zen of  another  state,  to  enter  upon  an  inquiry 
as  to  the  reasonableness  and  justice  of  the  rates 
prescribed  b)^  the  railroad  commission.  In- 
deed, it  was  in  so  doing  only  exercising  a 
power  expressly  named  in  the  act  creating  the 
commission." 

After  considering  the  cost  of  construction  of  the 
railroad,  its  bonded  indebtedness  and  the  cost  of 
operation,  whereby  it  appeared  that  even  with  the 
rates  which  it  was  charging,  it  could  not  pay  any 
interest  on  its  stock  and  that  with  the  rates  pre- 
scribed by  the  railroad  commission  it  would  actually 
be  operated  at  a  great  loss,  the  court  in  holding  that 
such  rates  as  were  prescribed  l^y  the  railroad  com- 
mission were  unreasonable,  said,  at  p.  412: 

^'It  is  unnecessary  to  decide,  and  we  do  not 
wish  to  be  understood  as  laying  down  as  an 
absolute  rule  that  in  every  case  a  failure  to 
produce  some  profit  to  those  who  have  in- 
vested their  money  in  the  Ijuilding  of  a  road 
is  conclusive  that  the  tariff  is  unjust  and  un- 
reasonable. And  yet  justice  demands  that 
every  one  should  receive  some  compensation 
for  the  use  of  his  money  or  property,  if  it  be 
possible,  without  prejudice  to  the  rights  of 
others.     There   may   l3e  circumstances  which 


32  RATE    REGULATION. 

would  justify  such  a  tariff;  there  may  have 
been  extravagance  and  a  needless  expenditure 
of  money;  there  may  be  waste  in  the  manage- 
ment of  the  road;  enormous  salaries,  unjust 
discrimination  as  between  individual  shippers, 
resulting  in  general  loss.  The  construction 
may  have  been  at  a  time  when  material  and 
labor  were  at  the  highest  price,  so  that  the 
actual  cost  far  exceeds  the  present  value;  the 
road  may  have  been  unwisely  built  in  localities 
where  there  is  no  sufficient  business  to  sus- 
tain a  road.  Doubtless,  too,  there  are  many 
other  matters  affecting  the  rights  of  the  com- 
munity in  which  the  road  is  built  as  well  as 
the  rights  of  those  who  built  the  road." 

New  Memphis  Gas  Light  Company  v.  City  of 
Memphis,  72  Fed.  Rep.  952  (1896). 

In  this  case  the  city  of  Memphis,  pursuant  to  a 
general  statute,  which  authorized  the  regulation 
of  gas  rates  and  provided  that  the  rates  should  not 
be  lower  than  $1.50  per  1,000  cubic  feet,  passed  an 
ordinance  reducing  the  price  to  the  minimum,  $1.50. 

It  appears  that  this  reduction  had  been  made 
without  any  investigation  as  to  what  was  a  rea- 
sonable price,  and  that  the  corporate  authorities 
had  simply  reduced  the  price  to  the  lowest  allowed 
by  the  statute. 

The  court,  in  granting  the  preliminary  injunc- 
tion against  the  enforcement  of  the  ordinance,  said, 
at  p.  955: 


THE    MORE    IMPORTANT    CASES    DIGESTED. 


33 


"The  state  is  under  an  obligation  to  act 
justly,  and  without  arbitrary  discrimination, 
between  corporations  of  the  state,  just  as  it 
is  between  citizens  of  the  state  enjoying  equal 
rights.     The  state  cannot  under  the  guise  of 
a  regulation  bring  about  a  destruction  and  a 
confiscation  of  a  company's  property;  and  the 
state's  power  to   absolutely  abolish  the  cor- 
poration must  be  distinguished  from  its  power 
to  destroy  its  business  and  confiscate  its  prop- 
erty, so  long  as  it  chooses  to  permit  its  exist- 
ence and  to  authorize  its  business  by  a  valid 
charter.     Chicago,   M.   &   St.   P.   Ry.   Co.   v. 
Mi7inesota,   134  U.  S.  418;   10  Sup.  Ct.  462, 
702.     And  this  is  the  fair  result  of  what  are 
known   as  the   "Reagan   Cases."     154  U.   S. 
362,  420,  413,  418;  14  Sup.  Ct.   1047,   1060, 
1062.     And   the   question   of  the   reasonable- 
ness of  a  rate  of  charge  is  eminently  a  ques- 
tion for  judicial  investigation,   requiring  due 
process  of  law  for  its  determination.     And  to 
deprive  a  company  of  the  power  of  charging 
reasonable  rates  for  the  manufacture  and  sale 
of  gas  is  to  deprive  it  of  the  use  of  its  property, 
and,  in  effect,  of  the  property  itself,  without 
the  due  process  of  law.     Chicago,  M.   d'  St, 
P.  Ry.  Co.  V.  Minnesota,  supra.     The  act  of 
assembly  under  consideration,  therefore,  must 
be  given  a  construction  which  would  not  ren- 
der it  invalid,  or  obnoxious  to  constitutional 
objections,  for  otherwise  the  act  itself  would 
be  void.     It  is  clear,  therefore,  that  the  act  in 
question,   in   fixing  a  hmit  l^elow  which  the 
taxing  district  should  not  go,  did  not  thereby 


34  KATE    REGULATION. 

authorize  the  taxing  district  to  reduce  the 
price  of  gas  to  that  Hmit  arbitrarily.  And  the 
very  use  of  the  term  'regulation'  implies  that 
an  investigation  shall  be  made;  that  an  op- 
portunity to  present  the  facts  shall  be  fur- 
nished, that,  when  the  facts  are  established, 
they  shall,  by  the  regulating  power,  be  given 
due  consideration;  and  that  such  action  as 
shall  be  taken  in  view  of  these  facts  thus 
ascertained,  shall  be  just  and  reasonable,  and 
such  as  enal^les  the  company  to  maintain  its 
existence,  to  preserve  the  property  invested 
from  destruction,  and  to  receive,  on  the  capital 
actually  and  bona  fide  invested  in  the  plant, 
a  remuneration  or  dividend  corresponding  in 
amount  to  the  ruling  rates  of  interest.  The 
company  has  a  right  to  such  gross  mcome  from 
the  sale  of  gas  as  will  enable  it  to  pay  all 
legitimate  operating  expenses,  pay  interest  on 
valid  fixed  charges,  so  far  as  bonds  or  securities 
represent  an  expenditure  actually  made  in  good 
faith,  and  also  to  pay  a  reasonable  dividend 
on  stock,  so  far  as  this  represents  an  actual 
investment  in  the  enterprise.  All  of  these 
items,  and  perhaps  others,  must  be  taken  into 
account  in  any  regulation  which  may  be  made 
in  respect  to  the  price  of  gas.  Such  investiga- 
tion and  such  regulation  as  are  contemplated 
by  the  statute  might  enable  the  company  to 
fix  the  price  at  $1.50  per  1,000  feet,  or  at  any 
named  figure  l3etween  that  and  the  former 
price  of  $1.75  per  1,000  feet.  This  would  de- 
pend on  the  reasonableness  of  the  regulation 
in  the  sense  above  explained,   keepmg  con- 


THE    MORE    IMPORTANT    CASES    DIGESTED.  35 

stantly  in  mind  that  the  power  to  regulate 
rates  is  not  a  power  to  destroy,  and  that  Umi- 
tation  is  not  the  equivalent  of  confiscation." 

Again,  the  court  said,  at  p.  956: 

''If  the  plaintiff  can  by  proof  sustain  the 
charges  of  this  bill,  it  results  inevitably  that 
the  ordinance  is  not  a  legal  and  valid  exercise 
of  the  power  conferred  on  the  taxing  district 
by  the  statute,  but  is  an  attempt  to  exercise 
the  power  in  a  manner  which  clearly  amounts 
to  destruction,  and  in  such  manner,  too,  as 
that  if  the  act  of  assembly  had  undertaken, 
in  terms  to  authorize  it,  would  render  the  act 
unconstitutional  and  void  on  its  face.  The 
distinction  is  between  a  valid  and  just  execu- 
tion of  the  power  given  by  the  act,  and  an 
illegal  and  unwarranted  execution  of  such 
power.  The  bill  charges  distinctly  that  under 
the  rate  of  charges,  as  fixed  by  this  ordinance, 
the  corporation  would  not  be  able  to  pay  its 
expenses,  interest  on  fixed  charges,  much  less 
a  reasonable  interest  or  dividend  on  its  stock, 
and  that  an  attempt  to  operate  under  such  a 
rate  of  prices  would  result  in  its  bankruptcy." 

Smyth  v.  Ames,  169  U.  S.  466  (1897). 

In  this  case  the  legislature  of  Nebraska  passed 
an  act,  making  a  reduction  of  29^  per  cent  in  the 
rates  to  be  charged  by  railroads  for  business  done 
within  the  state.  The  railroads  brought  a  bill  in 
the  Circuit  Court  in  Nebraska,  praying  .that  the 


36  RATE    REGULATION. 

authorities  be  enjoined  from  enforcing  the  regula- 
tion of  rates  as  provided  in  the  act  of  1903  of  the 
Nebraska  legislature.  The  Circuit  Court  entered 
a  decree,  granting  the  injunction  prayed  for,  and 
from  this  decree  an  appeal  was  taken  to  this  court 
by  the  state  authorities. 

The  United  States  Supreme  Court,  after  con- 
sidering the  case  as  decided  by  the  Circuit  Court 
granting  the  injunction  (to  the  length  of  some  100 
pages),  affirmed  the  decree  of  the  Circuit  Court. 

This  case  is  apposite  as  showing  to  what  extent 
the  legislature  may  regulate  the  rates  which  may 
be  charged  by  an  individual  or  corporation  en- 
gaged in  public  utility  service. 

Although  this  case  has  to  do  only  with  rail- 
roads, yet  the  principle  is  the  same  whether  the 
public  utility  be  that  of  a  common  carrier,  a  ware- 
houseman or  a  supplier  of  gas  or  electric  light,  or 
any  of  the  various  public  utilities. 

Mr.  Justice  Harlan,  in  dehvering  the  opmion 
of  the  court,  said,  at  p.  523: 

''What  amounts  to  deprivation  of  property 
without  due  process  of  law,  or  what  is  a  denial 
of  the  equal  protection  of  the  laws,  is  often 
difficult  to  determine,  especially  where  the 
question  relates  to  the  property  of  a  quasi- 
public  corporation,  and  the  extent  to  which 
it  may  be  subjected  to  public  control. 


THE    MORE    IMPORTANT    CASES    DIGESTED.  37 

''But  this  court,  speaking  b}"  Chief  Jus- 
tice Waite,  has  said  that  while  a  state  has 
power  to  fix  the  charges  by  railroad  com- 
panies for  the  transportation  of  persons  and 
property  within  its  own  jurisdiction,  unless 
restrained  by  valid  contract,  or  unless  what 
is  done  amounts  to  a  regulation  of  foreign  or 
interstate  commerce,  such  power  is  not  with- 
out limit;  and  that  'under  pretense  of  regulat- 
ing fares  and  freights,  the  state  cannot  require 
a  railroad  corporation  to  carry  persons  or 
property  without  reward,  neither  can  it  do 
that  which  in  law  amounts  to  the  taking  of 
private  property  for  public  use  without  just 
compensation,  or  without  due  process  of  law.'  " 
Railroad  Commission  cases,  116  U.  S.  307, 
325,  331. 

Again,  Mr.  Justice  Harlan,  at  p.  524,  said: 

"In  Reagan  v.  Farmers^  Loan  &  Trust  Co., 
154  U.  S.  362,  399,  which  involved  the  validity 
of  certain  rates  for  freights  and  passengers 
prescribed  by  a  railroad  commission,  estab- 
lished by  an  act  of  the  legislature  of  Texas, 
this  court,  after  referring  to  the  above  caseSj 
said:  'These  cases  all  support  the  proposition 
that  while  it  is  not  the  province  of  the  courts 
to  enter  upon  the  mereh'  administrative  duty 
of  framing  a  tariff  of  rates  for  carriage,  it  is 
within  the  scope  of  judicial  power,  and  a  part 
of  judicial  duty,  to  restrain  anything  which, 
in  the  form  of  a  regulation  of  rates,  operates 
to  deny  to  the  owners  of  property  invested  in 


38  RATE    KEGULATION. 

the  business  of  transportation  that  equal  pro- 
tection which  is  the  constitutional  right  of  all 
owners  of  other  property.  There  is  nothing 
new  or  strange  in  this.  It  has  always  been  a 
part  of  the  judicial  function  to  determine 
whether  the  act  of  one  party  (whether  that 
party  be  a  single  individual,  an  organized  body 
or  the  public  as  a  whole)  operates  to  divest 
the  other  party  of  any  rights  of  person  or 
property.  In  every  constitution  is  the  guar- 
antee against  the  taking  of  private  property  for 
public  purposes  without  just  compensation. 
The  equal  protection  of  the  laws,  which  by  the 
Fourteenth  Amendment  no  state  can  deny  to 
the  individual,  forbids  legislation  in  whatever 
form  it  may  be  enacted  by  which  the  property 
of  one  individual  is,  without  compensation, 
wrested  from  him  for  the  benefit  of  another, 
or  of  the  public." 

Again,  Mr.  Justice  Harlan  said,  at  p.  526: 

''While  rates  for  the  transportation  of  per- 
sons and  property  within  the  limits  of  the 
state  are  primarily  for  its  determination,  the 
question  whether  they  are  so  unreasonabl}^  low 
as  to  deprive  the  carrier  of  its  propert}"  with- 
out such  compensation  as  the  Constitution 
secures,  and  therefore,  without  due  process  of 
law,  cannot  be  so  conclusively  determined  by 
the  legislature  of  the  state,  or  by  regulations 
adopted  under  its  authority,  that  the  matter 
may  not  become  the  subject  of  judicial  in- 
quiry." 


THE    MORE    IMPORTANT    CASES    DIGESTED.  39 

Upon  the  proposition  that  the  people  of  one 
state  or  locaHty  are  entitled  to  the  same  rates  as 
the  people  of  another,  without  regard  to  local  con- 
ditions, the  court  said,  at  p.  540: 

''The  question  is  asked.  Are  not  the  people 
of  Nebraska  entitled  to  as  cheap  rates  as  the 
people  of  Iowa?  Of  course,  relatively,  they 
are.  That  is,  the  roads  may  not  discriminate 
against  the  people  of  any  one  state,  but  they 
are  not  necessarily  bound  to  give  absolutely 
the  same  rates  to  the  people  of  all  the  states; 
for  the  kind  and  amount  of  business  and  the 
cost  thereof  are  factors  which  determine  largely 
the  question  of  rates,  and  these  vaiy  in  several 
states.  The  volume  of  business  in  one  state 
may  be  greater  per  mile,  while  the  cost  of 
construction  and  maintenance  is  less.  Hence, 
to  enforce  the  same  rates  in  both  states  might 
result  in  one  in  great  injustice,  while  in  the 
other  it  would  only  ])e  reasonable  and  fair. 
Comparisons,  therefore,  between  the  rates  of 
two  states  are  of  little  value,  unless  all  the  ele- 
ments that  enter  into  the  problem  are  pre- 
sented." 

Again,  in  considering  the  elements  which  enter 
into  the  computation  as  to  the  fixing  of  reasonable 
rates,  the  court  said,  at  p.  546: 

''We  hold,  however,  that  the  basis  of  all 
calculations  as  to  the  reasonableness  of  rates 
to  be  charged  by  a  corporation  maintaining  a 


40  KATE    REGULATION. 

highway  under  legislative  sanction  must  be 
the  fair  value  of  the  property  being  used  b}^  it 
for  the  convenience  of  the  public.  And  in 
order  to  ascertain  that  value,  the  original  cost 
of  construction,  the  amount  expended  in  per- 
manent improvements,  the  amount  and  market 
value  of  its  bonds  and  stock,  the  present  as 
compared  with  the  original  cost  of  construc- 
tion, the  probable  earning  capacity  of  the 
property  under  particular  rates  prescribed  by 
statutes,  and  the  sum  required  to  meet  the 
operating  expenses  are  all  matters  for  consid- 
eration, and  are  to  be  given  such  weight  as 
may  be  just  and  right  in  each  case.  We  do 
not  say  that  there  may  not  be  other  matters 
to  be  regarded  in  estimating  the  value  of  the 
property.  What  the  company  is  entitled  to 
ask  is  a  fair  return  upon  the  value  of  that  which 
it  employs  for  the  public  convenience.  On  the 
other  hand,  what  the  public  is  entitled  to  de- 
mand is  that  no  more  be  exacted  from  it  for 
the  use  of  a  pu]3lic  highway  than  the  services 
rendered  by  it  are  reasonably  worth." 

San  Diego  Land  &  Town  Co.  v.  National  City, 
174  U.  S.  739  (1898). 
This  is  an  appeal  from  the  decree  of  the  Circuit 
Court  of  the  United  States,  for  the  Southern  Dis- 
trict of  California,  dismissing  a  bill  which  prayed 
to  have  the  rates  for  the  supply  of  water  estab- 
lished by  the  corporate  authorities  of  National 
City,  void. 


THE    MORE    IMPORTANT    CASES    DIGESTED.  41 

Pursuant  to  an  act  of  the  California  legislature, 
the  Board  of  Supervisors  were  authorized  to  fix 
annually  the  rates  to  be  charged  for  water  supply. 
The  water  company  was  engaged  in  supplying, 
among  other  things,  water  for  irrigation.  The 
rates  in  question  were  fixed  at  $4.00  per  acre. 

Mr.  Justice  Harlan,  in  delivering  the  opinion 
of  the  court  affirming  the  decree  dismissing  the 
bill,  said,  at  p.  753: 

''That  it  was  competent  for  the  state  of 
California  to  declare  that  the  use  of  all  water 
appropriated  for  sale,  rental  or  distribution 
should  be  a  public  use  and  subject  to  public 
regulation  and  control,  and  that  it  could  con- 
fer upon  the  proper  municipal  corporation 
power  to  fix  the  rates  of  compensation  to  be 
collected  for  the  use  of  water  supplied  to  an}^ 
city,  county  or  town,  or  to  the  inhabitants 
thereof,  is  not  disputed,  and  is  not,  as  we 
think,  to  be  doubted.  It  is  equally  clear  that 
this  power  could  not  be  exercised  arbitrarily 
and  without  reference  to  what  was  just  and 
reasonable  as  between  the  public  and  those 
who  appropriated  water  and  supplied  it  for 
general  use;  for  the  state  cannot  by  any  of  its 
agencies,  legislative,  executive  or  judicial,  with- 
hold from  the  owners  of  private  property  just 
compensation  for  its  use.  That  would  be  a 
deprivation  of  propertv  without  due  process 
of  law." 

Again,  at  p.  754,  the  court  said: 


42  RATE    REGULATION. 

"What  elements  are  involved  in  the  general 
inquiry  as  to  the  reasonableness  of  rates  es- 
tablished by  law  for  the  use  of  property  by  the 
public?  This  question  received  much  consid- 
eration in  Smyth  v.  Ames,  above  cited.  That 
case,  it  is  true,  related  to  rates  established  by 
a  statute  of  Nebraska  for  railroad  companies 
doing  business  in  that' state.  But  the  principles 
involved  in  such  a  case  are  applicable  to  the 
present  case." 

Again,  at  p.  757,  the  court  said: 

''What  the  company  is  entitled  to  demand, 
in  order  that  it  may  have  just  compensation, 
is  a  fair  return  upon  the  reasonable  value  of 
the  property  at  the  time  it  is  being  used  for  the 
public.  The  property  may  have  cost  more 
than  it  ought  to  have  cost,  and  its  outstand- 
ing bonds  for  money  borrowed  and  which  went 
into  the  plant  may  be  in  excess  of  the  real 
value  of  the  property.  So  that  it  cannot  be 
said  that  the  amount  of  such  bonds  should  in 
every  case  control  the  question  of  rates,  al- 
though it  may  be  an  element  in  the  inquiry  as 
to  what  is,  all  the  circumstances  considered, 
just  both  to  the  company  and  to  the  public." 

Again,  the  court,  in  conclusion,  said  at  p.  760: 

''But  we  do  not  think  that  we  are  warranted 
in  holding  that  the  rules  upon  which  the  de- 
fendant's board  proceeded  were  in  disregard 
of  the  principles  heretofore  announced  by  this 
court  in  the  cases  cited.  The  case  is  not  one 
for  judicial  interference  with  the  action  of  the 


THE    MORE    IMPORTANT    CASES    DIGESTED.  43 

local  authorities  to  whom  the  question  of  rates 
was  committed  by  the  state." 

CoTTiNG  V.  Kansas  City  Stock  Yards  Co.,  183 
U.  S.  79   (1901). 

In  this  case  the  act  of  March  3,  1897,  of  Kansas, 
fixed  the  rate  which  should  be  charged  by  the  stock 
yard  companies  doing  business  over  a  certain 
amount,  and  a  bill  was  brought  by  the  stockholders 
in  the  United  States  Circuit  Court  in  Kansas  to 
have  the  act  declared  unconstitutional.  The  Cir- 
cuit Court  dismissed  the  bill,  but  continued  the 
injunction  pending  an  appeal  to  the  United  States 
Supreme   Court. 

The  United  States  Supreme  Court  held  that  the 
act  was  unconstitutional  on  the  ground  that  the 
act  was  in  contravention  of  the  Fourteenth  Amend- 
ment of  the  Constitution  of  the  United  States,  in 
that  it  did  not  apply  to  all  stock  yard  companies, 
and  thereby  denied  to  companies  doing  business 
above  a  certain  amount,  equal  protection  of  the 
laws. 

The  question  as  to  the  right  of  the  legislature 
to  impose  rates,  or  the  reasonableness  of  the  rates, 
was  not  decided  in  this  case,  but  the  question  is  dis- 
cussed at  length  and  the  dicta  of  the  court  is  worthy 
of  careful  consideration.  ]\Ir.  Justice  Brew^er,  de- 
livering the  opinion  of  the  court,  said,  at  p.  84: 

''In  Munn  v.  Illinois,  94  U.  S.  113,  it  was 


44  RATE    REGULATION. 

held  that  the  state  had  power  to  fix  the  maxi- 
mum charges  for  the  storing  of  grain  in  ware- 
houses in  Chicago." 

Again,  at  p.  85: 

''Tested  by  the  rule  laid  down  in  Munn  v. 
Illmois,  it  may  be  conceded  that  the  state  has 
the  power  to  make  reasonable  regulation  of  the 
charges  for  services  rendered  by  the  stock 
yards  company.  Its  stock  yards  are  situ- 
ated in  one  of  the  gateways  of  commerce,  and 
so  located  that  they  furnish  important  fa- 
cilities to  all  seeking  transportation  of  cattle. 
While  not  a  common  carrier,  nor  engaged  in 
an}^  distinctively  public  employment,  it  is  do- 
ing a  work  in  which  the  public  has  an  interest, 
and,  therefore,  must  be  considered  as  subject 
to  governmental  regulation. 

''But  to  what  extent  may  this  regulation 
go?  Is  there  no  limit  beyond  which  the  state 
may  not  interfere  with  the  charges  for  services 
either  of  those  who  are  engaged  in  performing 
some  public  service,  or  of  those  who,  w^hile  not 
engaged  in  such  service,  have  jxt  devoted 
their  property  to  a  use  in  which  the  public 
has  an  interest?  And  is  the  extent  of  govern- 
mental regulation  the  same  in  both  of  these 
classes?  In  Munn  v.  Illinois,  one  of  the  latter 
class,  in  which  the  power  of  governmental 
regulation  w^as  affirmed,  it  was  said,  at  p.  125: 
'From  this  it  is  apparent  that  down  to  the 
time  of  the  adoption  of  the  Fourteenth  Amend- 
ment it  was  not  supposed  that  statutes  regulat- 


THE    MORE    IMrOIITANT    CASES    DIGESTED.  45 

ing  the  use,  or  even  the  price  of  the  use,  of 
private  property  necessarily  deprives  an  owner 
of  his  property  without  due  process  of  law. 
Under  some  circumstances  they  ma}^  but  not 
under  all.' 

'^n  Budd  V.  New  York,  143  U.  S.  517,  it 
was  not  charged  or  shown  that  the  rates  pre- 
scribed by  the  legislature  were  unreasonable, 
and  the  only  question  was  the  power  of  the 
legislature  to  interfere  at  all  in  the  matter. 
The  same  is  true  of  Brass  v.  Stoeser,  153  U.  S. 
391,  in  which  nothing  was  presented  calling 
for  any  consideration  of  the  test  of  reasonable- 
ness, or  of  a  hmit  to  the  legislative  power. 

''As  to  those  cases  in  which  governmental 
regulation  of  charges  was  in  respect  to  parties 
doing  some  public  service,  the  following  is  a 
resume  of  the  decisions:  In  Spring  Valley 
Water  Works  v.  Schottler,  110  U.  S.  347,  it 
was  said  (p.  354):  'What  may  be  done  if  the 
municipal  authorities  do  not  exercise  an  honest 
judgment,  or  if  they  fix  upon  a  price  which  is 
manifestly  unreasonable,  need  not  now  be  con- 
sidered for  that  proposition  is  not  presented 
by  this  record.  The  objection  here  is  not  to 
any  improper  prices  fixed  by  the  officers,  but 
their  power  to  fix  prices  at  all." 

In  Railroad  Commission  Cases,  116  U.  S.  307  (p. 
331): 

"From  what  has  thus  l^een  said  it  is  not  to 
be  inferred  that  this  power  of  Hmitation  or 
regulation  is  itself  without  limit.     This  power 


46  RATE    REGULATION. 

to  regulate  is  not  a  power  to  destroy,  and 
limitation  is  not  the  equivalent  of  confisca- 
tion. Under  pretense  of  regulating  fares  and 
freights  the  state  cannot  require  a  railroad 
corporation  to  carry  persons  or  property  with- 
out reward;  neither  can  it  do  that  which  in 
law  amounts  to  a  taking  of  private  property 
for  public  use  without  just  compensation,  or 
without  due  process  of  law." 

In  Wabash  Ry.  Co.  v.  Illinois^  nothing  was  said 
affecting  the  question  of  the  extent  of  the  power 
of  the  legislature.  In  Dow  v.  Beidelman,  125  U.  S. 
680,  the  quotation  heretofore  made  from  the  Rail- 
road Commission  Cases  was  quoted  with  approval. 
In  Chicago,  Mil.  &  St.  Paul  Ry.  Co.  v.  Minnesota, 
134  U.  S.  418,  the  same  passage  was  quoted,  and 
it  was  added  (p.  458): 

^'If  the  company  is  deprived  of  the  power  of 
charging  reasonable  rates  for  the  use  of  its 
property,  and  such  deprivation  takes  place  in 
the  absence  of  an  investigation  or  judicial 
machinery,  it  is  deprived  of  the  lawful  use  of 
its  property,  and  thus,  in  substance  and  effect, 
of  the  property  itself,  without  due  process  of 
law  and  in  violation  of  the  Constitution  of  the 
United  States;  and  in  so  far  as  it  is  thus  de- 
prived, while  other  persons  are  permitted  to 
receive  reasonable  profits  upon  their  invested 
capital,  the  company  is  deprived  of  the  equal 
protection  of  the  laws.  " 


THE    MORE    IMPORTANT    CASES    DIGESTED.  47 

In    Chicago   &c.   Railway  Co.   v.   Wellman,    143 
U.S.  339  (p.  334): 

''The  legislature  has  power  to  fix  rates,  and 
the  extent  of  judicial  interference  is  protection 
against  unreasonable  rates." 

In  Reagaji  v.  Farmers'  Loan  &  Trust  Co.,   154 
U.  S.  362  (p.  399): 

''The  equal  protection  of  the  laws  which, 
by  the  Fourteenth  Amendment,  no  state  can 
deny  to  the  individual,  forbids  legislation,  in 
whatever  form  it  may  be  enacted,  by  which 
the  property  of  one  individual  is,  without  com- 
pensation, wrested  from  him  for  the  benefit  of 
another,  or  of  the  public.     This,  as  has  been 
often  observed,  is  a  government  of  law  and 
not^a  government  of  m.en,  and  it  must  never 
be  forgotten  that  under  such  a  government, 
with  its  constitutional  Hmitations  and  guar- 
antees, the  forms  of  law  and  the  machinery 
of  government,  with  all  their  reach  and  power, 
must   m   their  actual  workings  stop   on   the 
hither   side   of  the   unnecessary   and   uncom- 
pensated taking  or  destruction 'of  any  private 
property  legally  acquired  and  legally  held." 

And  again  (p.  412): 

"It  is  unnecessary  to  decide,  and  we  do  not 
wish  to  be  understood  as  laying  down  an  ab- 
solute rule  that  in  every  case  a  failure  to  pro- 


48  KATE    REGULATION. 

duce  some  profit  to  those  who  have  invested 
their  money  in  the  building  of  a  road  is  con- 
clusive that  the  tariff  is  unjust  and  unrea- 
sonable. And  yet  justice  demands  that  every 
one  should  receive  some  compensation  for  the 
use  of  his  money  or  property,  if  it  be  possible 
without  prejudice  to  the  rights  of  others. 
There  may  be  circumstances  which  would 
justify  such  a  tariff;  there  may  have  been 
extravagance  and  a  needless  expense  of  money  ; 
there  may  be  waste  in  the  management  of  the 
road;  enormous  salaries,  unjust  discrimination 
as  between  individual  shippers  resulting  in 
general  loss.  The  construction  may  have  been 
at  a  time  when  material  and  labor  were  at  the 
highest  price,  so  that  the  actual  cost  far  ex- 
ceeds the  present  value;  the  road  may  have 
been  unwisely  built  in  localities  where  there 
is  not  sufficient  business  to  sustain  a  road. 
Doubtless,  too,  there  are  many  other  matters 
affecting  the  rights  of  the  community  in  which 
the  road  was  built,  as  well  as  the  rights  of  those 
who  have  built  the  road." 

In  St.  Louis  &  San  Francisco  Ry.  Co.  v.  Gill, 
156  U.  S.  649,  is  this  language  (p.  657): 

''This  court  has  declared  in  several  cases 
that  there  is  a  remedy  in  the  courts  for  reUef 
against  legislation  establishing  a  tarifT  of  rates 
which  is  so  unreasonable  as  to  practically  de- 
stroy the  value  of  the  property  of  companies 
engaged  in  the  carrying  business." 


THE    MOKE    IMPORTANT    CASES    DIGESTED.  49 

In  Covington  &c.  Turnpike  Co.  v.  Sand j or d,  164 
U.  S.  578  (pp.  596,  597): 

''The  legislature  has  the  authority  in  every 
case,  where  its  power  has  not  been  restrained 
by  contract,  to  proceed  upon  the  ground  that 
the  public  may  not  rightfully  be  required  to 
submit  to  unreasonable  exactions  for  the  use 
of  a  public  highway  established  and  main- 
tained under  legislative  authority.  If  a  cor- 
poration cannot  maintain  such  a  highway  and 
earn  dividends  for  stockholders,  it  is  a  mis- 
fortune for  it  and  them,  which  the  Constitu- 
tion does  not  require  to  be  remedied  by  im- 
posing unjust  burdens  upon  the  public.  So 
that  the  right  of  the  public  to  use  the  defend- 
ant's turnpike  upon  payment  of  such  tolls  as 
in  view  of  the  nature  and  value  of  the  services 
rendered  by  the  company  are  reasonable  is  an 
element  in  the  general  inquiry  whether  the 
rights  established  by  law  are  unjust  and  un- 
reasonable. That  inquiry  also  involves  other 
considerations,  such,  for  instance,  as  the  rea- 
sonable cost  of  maintaining  the  road  in  good 
condition  for  public  use,  and  the  amount  that 
may  have  been  really  and  necessarily  invested 
in  the  enterprise.  In  short,  each  case  must 
depend  upon  its  special  facts;  and  when  a 
court,  without  assuming  itself  to  prescribe 
rates,  is  required  to  determine  whether  the 
rates  prescribed  by  the  legislature  for  a  cor- 
poration controlling  the  pu})lic  highway  are, 
as  an  entirety,  so  unjust  as  to  destroy  the  value 
of  its  property  for  all  the  purposes  for  which 
4 


50  RATE    REGULATION. 

it  was  acquired,  its  duty  is  to  take  into  con- 
sideration the  interests  both  of  the  pubHc  and 
of  the  owner  of  the  property,  together  with  all 
other  circumstances  that  are  fairly  to  be  con- 
sidered in  determining  whether  the  legislature 
has,  under  the  guise  of  regulating  rates,  ex- 
ceeded its  constitutional  authority  and  practi- 
cally deprived  the  owner  of  property  without 
due  process  of  law." 

In  Smyth  v.  Ames,  169  U.  S,  466,  after  an  elabo- 
rate discussion  of  the  question  of  rates  and  the 
power  of  the  legislature  in  respect  thereto,  it  was 
said   (pp.  546,  547): 

''We  hold,  however,  that  the  basis  of  all 
calculations  as  to  the  reasonableness  of  rates 
to  be  charged  by  a  corporation  maintaining 
a  highway  under  legislative  sanction  must  be 
the  fair  value  of  the  property  being  used  by  it 
for  the  convenience  of  the  public ;  and  in  order 
to  ascertain  that  value,  the  original  cost  of 
construction,  the  amount  expended  in  per- 
manent improvements,  the  amount  and  market 
value  of  its  bonds  and  stock,  the  present  as 
compared  with  the  original  cost  of  construc- 
tion, the  probable  earning  capacity  of  the 
property  under  particular  rates  prescribed  by 
statutes  and  the  sum  required  to  meet  operat- 
ing expenses  are  all  matters  for  consideration, 
and  are  to  be  given  such  weight  as  may  be  just 
and  right  in  each  case.  We  do  not  say  that 
there  may  not  be  other  matters  to  be  regarded 


THE    MORE    IMPORTANT    CASES    DIGESTED.  ol 

in  estimating  the  value  of  the  propertj^  What 
the  company  is  entitled  to  ask  is  a  fair  return 
upon  the  value  of  that  which  it  emploj^s  for  the 
public  convenience.  On  the  other  hand,  what 
the  public  is  entitled  to  demand  is  that  no  more 
be  exacted  from  it  for  the  use  of  a  public  high- 
way than  the  services  rendered  by  it  are  rea- 
sonably worth." 

In  San  Diego  Land  Co.  v.  National  City,   174 
U.  S.  739  (p.  757): 

''The  contention  of  the  appellant  in  the 
present  case  is  that  in  ascertaining  what  are 
just  rates  the  court  should  take  into  considera- 
tion the  cost  of  its  plant,  the  cost  per  annum 
of  operating  the  plant,  including  interest  paid 
on  money  borrowed  and  reasonably  necessary 
to  be  used  in  constructing  the  same ;  the  annual 
depreciation  of  the  plant  from  natural  causes 
resulting  from  its  use  and  a  fair  profit  to  the 
company  over  and  above  such  charges  for  its 
service  in  supplying  the  water  to  consumers, 
either  by  way  of  interest  on  the  money  it  has 
expended  for  the  public  use,  or  upon  some  other 
fair  and  equitable  basis.  Undoubtedly  all 
these  matters  ought  to  be  taken  into  considera- 
tion, and  such  weight  be  given  them  when 
rates  are  being  fixed  as,  under  all  circumstances, 
,  v/ill  be  just  to  the  company  and  to  the  public. 
The  basis  of  calculation  suggested  by  the  ap- 
pellant is,  however,  defective  in  not  requiring 
the  real  value  of  the  property  and  the  fair  value 
in  themselves  of  the  service  rendered  to  be 


52  RATE    REGULATION. 

taken  into  consideration.  What  the  company 
is  entitled  to  demand  in  order  that  it  ma}"  have 
just  compensation  is  a  fair  return  upon  the 
reasonable  value  of  the  property  at  the  time 
it  is  being  used  for  the  public.  The  property 
may  have  cost  more  than  it  ought  to  have 
cost,  and  its  outstanding  bonds  for  money 
borrowed  and  which  went  into  the  plant  may 
be  in  excess  of  the  real  value  of  the  property. 
So  that  it  cannot  be  said  that  the  amount  of 
such  bonds  should  in  every  case  control  the 
question  of  rates,  although  it  may  be  an  ele- 
ment in  the  inquiry  as  to  what  is,  all  the  cir- 
cumstances considered,  just  both  to  the  com- 
pany and  to  the  public." 

And  also  affirming  the  limit  of  judicial  inter- 
ference with  legislative  action  (p.  764) : 

''But  it  should  also  be  remembered  that  the 
judiciary  ought  not  to  interfere  with  the  collec- 
tion of  rates  established  under  legislative  sanc- 
tion, unless  they  are  so  plainly  and  palpably 
unreasonable  as  to  make  their  enforcement 
equivalent  to  the  taking  of  property  for  pubhc 
use  without  such  compensation  as,  under  all 
the  circumstances,  is  just  both  to  the  owner 
and  to  the  public;  that  is,  judicial  interference 
should  never  occur  unless  the  case  presents 
clearly  and  beyond  all  doubt  such  a  flagrant 
attack  upon  the  rights  and  property,  under 
the  guise  of  regulation,  as  to  compel  the  court 
to  say  that  the  rates  prescribed  will  neces- 
sarily have  the  effect  to  deny  just  compensa- 


THE    MOKE    IMPORTANT    CASES    DIGESTED.  53 

tion  for  private  property  taken  for  the  public 
use." 

Again,  Mr.  Justice  Brewer  said,  at  p.  91: 

''In  the  hght  of  these  quotations  this  may 
be  affirmed  to  be  the  present  scope  of  the 
decisions  of  this  court  in  respect  to  the  power 
of  the  legislature  in  regulating  rates:  As  to 
those  individuals  and  corporations  who  have 
devoted  their  property  to  a  use  in  which  the 
public  has  an  interest,  although  not  engaged 
in  the  work  of  a  confessedly  public  character, 
there  has  been  no  further  ruling  than  that  the 
state  may  prescribe  and  enforce  reasonable 
charges.  What  shall  be  the  test  of  reason- 
ableness in  those  charges  is  absolutely  un- 
disclosed." 

Again,  at  p.  97,  the  court  said: 

''The  authority  of  the  legislature  to  inter- 
fere by  a  regulation  of  rates  is  not  an  authority 
to  destroy  the  principles  of  these  decisions,  but 
simply  to  enforce  them.  Its  prescription  of 
rights  is  prima  facie  evidence  of  their  reason- 
ableness. In  other  words,  it  is  a  legislative 
declaration  that  such  charges  are  reasonable 
compensation  for  the  services  rendered,  but 
it  does  not  follow  therefrom  that  the  legis- 
lature has  the  power  to  reduce  any  reasonable 
charges  because  by  reason  of  the  volume  of 
business  done  by  the  party  he  is  making  more 
profit  than  others  in  the  same  or  other  busi- 


54  RATE    EEGULATION. 

ness.  The  question  is  alwaj^s  not  what  does 
he  make  as  the  aggregate  of  his  profits,  but 
what  is  the  vahie  of  the  services  which  he 
renders  to  the  one  seeking  and  receiving  such 
services.  Of  course,  it  may  sometimes  be,  as 
suggested  in  the  opmion  of  Lord  Chancellor 
Selborne,  that  the  amount  of  the  aggregate 
profits  may  be  a  factor  in  considering  the 
question  of  the  reasonableness  of  the  charges, 
but  this  is  only  one  factor  and  is  not  that  which 
finally  determines  the  question  of  reasonable- 
ness. Now,  the  controversy  in  the  Circuit 
Court  proceeded  upon  the  theory  that  the 
aggregate  of  profits  was  the  pivotal  fact.  To 
that  the  testimony  was  adduced,  upon  it  the 
findings  of  the  master  were  made,  and  in  recog- 
nition of  that  fact  the  opinion  of  the  court  was 
announced.  Obviously,  as  we  think,  in  all 
this  the  lines  of  inquiry  were  too  narrowly 
pursued." 

Stanislaus  County  v.  San  Joaquin  C.  &  I.  Com- 
pany, 192  U.  S.  201  (1903). 
In  this  case  the  corporate  authorities  of  the 
county  appealed  from  the  decree  of  the  Circuit 
Court  of  the  United  States  for  the  Northern  Dis- 
trict of  Cahfornia,  setting  aside  an  ordinance 
adopted  by  the  Board  of  Supervisors  fixing  the 
water  rates.  Mr.  Justice  Peckham,  in  delivering 
the  opinion  of  the  court,  reversing  the  decree,  said, 
at  p.  213: 

''It  is  not  confiscation  nor  a  taking  of  prop- 


THE    MORE    IMPORTANT    CASES    DIGESTED.  55 

erty  without  due  process  of  law,  nor  a  denial 
of  the  equal  protection  of  the  laws,  to  fix  water 
rates  so  as  to  give  an  income  of  six  per  cent 
upon  the  then  value  of  the  property  actually 
used,  for  the  purpose  of  supplying  water  as 
provided  by  law,  even  though  the  company 
had  prior  thereto  been  allowed  to  fix  rates  that 
would  secure  to  it  one  and  a  half  per  cent  a 
month  income  upon  the  capital  actually  in- 
vested in  the  undertaking.  If  not  hampered 
by  an  unalterable  contract,  providing  that  a 
certain  compensation  shoulcl  always  be  re- 
ceived, we  think  that  a  law  which  reduces  the 
compensation  theretofore  allowed  to  six  per 
cent  upon  the  present  value  of  the  property 
used  for  the  pubhc  is  not  unconstitutional. 
There  is  nothing  in  the  nature  of  confiscation 
about  it. 

"The  original  cost  may  have  been  too  great; 
mistakes  of  construction,  even  though  honest, 
may  have  l)een  made,  which  necessarily  en- 
hanced the  cost;  more  property  may  have  been 
acquired  than  necessary  or  needful  for  the 
purpose  intended.  Other  circumstances  might 
exist  which  would  show  the  original  rates  much 
too  large  for  fair  or  reasonable  compensation 
at  the  present  time.  Notwithstanding  such 
facts,  are  the  shareholders  in  the  company-  to 
be  forever  entitled  to  eighteen  per  cent  upon 
this  cost,  and  does  a  reduction  in  amount,  as 
provided  for  in  the  act  of  1885,  take  away 
property  in  violation  of  the  provisions  of  the 
Federal  Constitution?     We  think  not. 

"In  this  case  much  of  the  total  amount  ex- 


56  RATE    REGULATION. 

pended  in  the  course  of  the  construction  of  the 
works  was  not  proved  by  those  who  made  such 
expenditures,  and  the  items  and  total  amount 
of  the  cost  of  construction  were  only  proved 
by  the  books.  What  such  books  did  not  prove 
was  the  reasonableness  of  that  cost,  its  pro- 
priety or  necessity.  There  were  statements 
that  appeared  in  the  minutes  of  the  meetings 
of  the  shareholders  which  were  put  in  evi- 
dence, that  showed  at  least  a  dispute  as  to  the 
proper  cost  of  the  works,  and  at  one  of  these 
meetings  a  shareholder  said  there  had  been  a 
waste  in  the  management  of  the  affairs  of  the 
company,  amounting  to  $350,000,  which  was 
caused  by  the  chief  engineer  who  had  been  in 
charge  of  the  canal,  and  that  his  mistakes  had 
cost  the  company  a  good  deal  of  money. 
There  would  seem  to  have  been  more  of  a  dis- 
pute as  to  who  was  responsible  for  this  loss 
than  over  the  fact  of  loss.  At  another  meet- 
ing, held  in  December,  1881,  the  president  had 
said  in  his  remarks  to  the  meeting  that,  in  his 
opinion,  with  careful  management  the  canal 
would  pay  a  fair  revenue  on  what  it  ought  to 
have  cost.  Although  these  minutes  did  not 
conclusiveh^  prove  the  fact  of  the  excessive 
cost  of  the  work,  A^et  where  the  books  of  the 
company  were  substantially  the  only  evidence 
of  the  amount  expended,  and  there  was  no 
other  satisfactory  evidence  of  the  reasonable- 
ness of  the  expenditures,  it  would  not  be  sur- 
prising if  the  board  should  have  regarded  the 
statements  in  the  minutes  relating  to  ex- 
cessive cost  as  a  justification,  if  not  a  require- 


THE    MORE    IMPORTANT    CASES    DIGESTED.  57 

ment,  for  the  reduction  of  the  cost  of  con- 
struction, upon  which  rates  might  be  fixed, 
by  at  least  the  amount  mentioned,  $350,000. 

"Other  considerations  in  the  shape  of  facts, 
circumstances  and  conditions  pertinent  to  the 
alleged  cost  of  the  work,  and  appearing  in  the 
course  of  the  inquir}^  may  have  been  con- 
sidered by  the  supervisors  and  the  conclusion 
arrived  at,  after  a  consideration  of  all  the 
material  facts,  that  the  rates  fixed  would  re- 
sult in  justice  to  both  the  company  and  the 
consumers,  as  called  for  by  the  act. 

"Judging  by  this  record,  we  are  unable  to 
say  the  board  of  supervisors  failed  to  provide 
just  and  fair  compensation  for  the  use  of  the 
property  by  the  pubhc." 

Citing  also :  San  Diego  Land  Co.  v.  National  City, 
174  U.  S.  739;  Smyth  v.  Ames,  169  U.  S.  466;  San 
Diego  Land  Co.  v.  Jasper,  189  U.  S.  439. 


PART  IV. 

THE  STATUTES  OF  THE  SEVERAL  STATES  AUTHORIZ- 
ING MUNICIPALITIES  TO  ERECT  GAS  AND  ELECTRIC 
PLANTS  AND  REGULATING  THE  RATES  FOR  THE 
CHARGES  FOR  THE  SUPPLY  OF  GAS  AND  ELEC- 
TRICITY, BY  MUNICIPALITIES,  PUBLIC  CORPORA- 
TIONS   AND    INDIVIDUALS. 

In  most  of  the  states  there  has  been  some  legis- 
lation affecting  the  manufacture  and  sale  of  gas 
and  electricity  and  I  have  endeavored  to  set 
forth  here  the  latest  statutes  in  each  state,  taking 
the  states  in  alphabetical  order. 

There  are  very  few  states  in  which  no  such  legis- 
lation has  been  enacted,  and  where  any  state  is 
omitted  it  is  for  that  reason. 

ARIO^NSAS. 

Digest  of  the  Statutes   (Wm.   Kirby,   1904). 

Ch.  115,  Sec.  5445.  '^The  City  Council  of  any 
city  or  town  in  this  state  is  hereby  authorized, 
when  complaint  is  filed  with  them  by  five  or  more 
citizens  of  such  city  or  town  that  any  water  com- 

58 


THE  STATUTES  OF  THE  SEVERAL  STATES.  59 

pany,  gas  or  electric  light  plant,  or  any  person 
managing  such  water,  gas  or  electric  light  plant, 
is  charging  an  exorbitant  rate  for  the  supply  of 
water,  gas  or  electricity,  to  summons  all  such  per- 
sons together  with  their  books  and  make  such 
examination  as  will  be  necessary  to  determine 
whether  or  not  the  prices  charged  for  water,  gas 
or  electricity  is  reasonable;  and  if  upon  examina- 
tion the  City  Council  shall  determine  that  the 
citizens  or  any  number  of  the  citizens  of  such  city 
or  town  is  being  charged  an  unreasonable  price 
for  water,  gas  or  electricity,  it  shall  be  their  duty 
to  fix  such  price  to  be  paid  for  water,  gas  or  elec- 
tricity, as  they  may  deem  to  be  a  reasonable 
charge." 

Sec.  5446.  ''Any  person,  company  or  corpora- 
tion now  owning  or  operating  or  who  may  here- 
after own  or  operate  any  water,  gas  or  electric 
Hght  plant  in  this  state,  situated  in  any  of  the  cities 
or  towns  of  this  state,  for  the  purpose  of  furnish- 
ing the  inhabitants  of  such  city  or  town  with  water, 
gas  or  electricity,  is  hereby  required  to  appear 
before  the  City  Council  or  any  committee  thereof 
as  often  as  such  City  Council  may  deem  necessary 
and  exhibit  the  books  of  water,  gas  or  electric  light 
plant,  and  are  hereby  required  to  adopt  such  rates 
to  be  charged  for  water,  gas  or  electricity,  as  shall 
be  fixed  by  the  City  Council  of  such  city  or  town." 

Sec.  5447.  "Any  person,   company  or  corpora- 


60  EATE    REGULATION. 

tion  owning  or  operating  such  water,  gas  or  elec- 
tric light  plant,  who  shall  fail  or  refuse  to  accept 
the  rate  as  fixed  by  the  City  Council  of  any  city 
or  town  in  this  state  to  be  charged  for  water,  gas 
or  electricity,  and  mstead  thereof  shall  charge,  de- 
mand or  receive  a  greater  amount  than  that  fixed 
by  the  City  Council  as  aforesaid,  shall  be  deemed 
guilty  of  a  misdemeanor,  and  upon  conviction  in 
any  mayor,  police  or  justice  court  or  the  Circuit 
Court  on  appeal  shall  be  fined  in  any  sum  not  less 
than  twenty-five  dollars,  nor  more  than  five  hun- 
dred dollars,  and  each  day  that  such  overcharge 
is  made  shall  constitute  a  separate  offense  (Act 
of  April  21,   1903)." 

CALIFORNIA. 

Constitution  of  California- — Regulation  of  Tele- 
graph, Gas,  Storage  and  Wharfage  Rates. 

Sec.  33,  Art.  IV.  ''The  legislature  shall  pass 
laws  for  the  regulation  and  limitation  of  the  charges 
for  services  performed  and  commodities  furnished 
by  telegraph  and  gas  corporations  and  the  charges 
by  corporations  or  individuals  for  storage  and 
wharfage,  in  which  there  is  a  public  use ;  and  where 
laws  shall  provide  for  the  selection  of  any  person 
or  officer  to  regulate  and  limit  such  rates,  no  such 
person  or  officer  shall  be  selected  by  any  corpora- 
tion or  individual  interested  in  the  business  to  be 


THE  STATUTES  OF  THE  SEVERAL  STATES.     61 

regulated,  and  no  person  shall  be  selected  who  is 
an  officer  or  stockholder  in  any  such  corporation." 

(There  has  been  no  legislation  under  this 
provision  and  no  citation  by  the  courts.  An- 
notation Brobeck  &  Simms'  Corp.  Laws  of 
Cal.,   1904.) 

Constitution  of  California — Use  of  streets  by  tvater 
and  lighting  companies. 

Sec.  19,  Art.  XI.  ''In  any  city  where  there  are 
no  public  works  owned  and  controlled  by  the 
municipality  for  supplying  the  same  with  water 
or  artificial  light,  any  individual  or  any  company 
duly  incorporated  for  such  purpose  under  and  by 
authority  of  the  laws  of  this  state  shall,  under  the 
direction  of  the  Superintendent  of  Streets,  or  other 
officer  in  control  thereof,  and  under  such  general 
regulations  as  the  municipality  may  prescribe  for 
damages  and  indemnity  of  damages,  have  the 
privilege  of  using  the  public  streets  and  thorough- 
fares thereof,  and  of  laying  down  pipes  and  con- 
duits therein  and  connections  therewith  so  far  as 
may  be  necessary  for  introducing  into,  supplying 
such  city  and  its  inhabitants  either  with  gas  light 
or  other  illuminating  light,  or  with  fresh  water 
for  domestic  and  all  other  purposes,  upon  the  con- 
dition that  the  municipal  government  shall  have 
the  right  to  regulate  the  charges  thereof." 

Annotation  (Brobeck  &  Simms',  1904),^  Lighting 


62  RATE    REGULATION. 

Companies.  Although  the  contract  fixing  the  price 
of  gas  may  be  void,  still  if  the  gas  is  actually  fur- 
nished to  and  used  by  the  municipality,  the  board 
may  allow  for  its  payment  such  sum  as  it  is  rea- 
sonably worth.  San  Francisco  Gas  Co.  v.  Dunn, 
62  Cal.  580. 

Political  Code  of  California   (1903). 

Sec.  4412.  Contract  for  gas  and  water.  ''The 
Common  Council  may  contract  with  gas  and  water 
companies  for  supplying  the  streets  and  public 
buildings  with  all  gas  and  water  necessary  for  their 
proper  use;  the  rates  to  be  paid  therefor  must  not 
be  fixed  for  a  term  exceeding  five  years  and  the 
city  authorities  must  reserve  the  right  to  abrogate 
such  contract  whenever  gas  and  water  is  offered 
to  be  supplied  at  two-thirds  of  such  fixed  contract 
price." 

COLORADO. 

Mills'  Annotated  Stat.  (1891),  ch.  124,  sec.  4403, 
sub.    69. 

Gas — Water — Private  companies,  etc.  ''When 
the  right  to  build  and  operate  such  water  or  gas 
works  is  granted  to  private  individuals  or  incor- 
porated companies  by  said  cities  and  towns,  the}' 
may  make  such  grant  to  inure  for  a  term  of  not 
more  than  twenty-five  years  and  authorize  such 
individuals  or  company  to  charge  and  collect  from 
each  person  supplied  by  them  with  water  or  gas, 


THE  STATUTES  OF  THE  SEVERAL  STATES.     63 

such  water  or  gas  rent  as  may  be  agreed  upon  be- 
tween said  person  or  corporation  so  building  said 
works  and  said  city  or  town;  and  such  cities  or 
towns  are  authorized  and  empowered  to  enter  into 
a  contract  with  the  individual  or  company  con- 
structing said  works,  to  supply  said  city  or  town 
with  water  for  fire  purposes,  and  for  such  other 
purposes  as  may  be  necessary  for  the  health  and 
safety  thereof,  and  also  with  gas,  and  to  pay  there- 
for such  sum  or  sums  as  may  be  agreed  upon  be- 
tween said  contracting  parties." 

Mills'  Col.  Digest  (1901),  vol.  1— Constitutional 
law. 

Sec.  80.  Power  to  regulate  charges  for  public  ser- 
vices. ''The  general  power  of  the  legislative  de- 
partment to  regulate  the  compensation  of  a  cor- 
poration for  performing  public  services,  in  the 
absence  of  a  contract  regulating  it,  is  subject  to 
the  hmitation  that  it  must  be  reasonably  exercised, 
and  the  reasonableness  of  the  regulation  is  a  proper 
subject  of  judicial  inquiry.  But  when,  as  in  the 
case  at  bar,  the  corporation  rendering  the  services 
and  the  municipality  have  mutually  agreed  upon 
a  method  for  determining  such  compensation,  and 
the  latter  has  complied  therewith,  the  former  may 
not  insist  upon  its  constitutional  rights,  and  dis- 
regard the  contract  without  showing  the  imrea- 
sonableness  or  non-enforceability  thereof." 


64  RATE    REGULATION. 

CONNECTICUT. 

General  Statutes  of  Connecticut  (Revision  of  1902). 
(1893,  ch.  231,  p.  1.)     Ch.  122.  Gas  and  Electricity. 

Sec.  1978.  Municipalities  may  establish  gas  and 
electric  plants.  "Any  city,  town,  or  borough,  may 
under  the  limitations  of  this  chapter  construct, 
purchase,  lease,  or  establish  and  maintain,  within 
its  limits,  one  or  more  plants  for  the  manufacture 
and  distribution  of  gas  or  electricity  for  furnishing 
light  for  municipal  use,  and  for  the  use  of  such  of 
its  inhabitants  as  may  require  and  pay  for  the 
same.  Such  plants  may  include  suitable  lands, 
structures,  easements,  water  privileges,  stations, 
gas  meters,  boilers,  engines,  dynamos,  tools,  ma- 
chinery, pipes,  conduits,  poles,  conductors,  burners, 
lamps  and  other  apparatus  and  appliances  for 
making,  generating,  distributing  and  using  gas  or 
electricity  for  lighting  purposes."  (1893,  ch.  231, 
p.  8.) 

Sec.  1785.  Board  of  gas  and  electrical  commis- 
sioners. ''Whenever  any  city,  town  or  borough 
shall  obtain  a  plant  as  provided  in  §  1978,  a  com- 
mission shall  be  appointed,  as  hereinafter  provided, 
to  be  known  as  the  board  of  gas  commissioners, 
board  of  electrical  commissioners,  or  board  of  gas 
and  electrical  commissioners,  according  as  a  plant 
for  one  or  both  may  be  under  their  charge,  to  whom 
shall  be  intrusted,  subject  to  any  ordinances  or 
by-laws  established  by  any  common  council  of  any 


THE  STATUTES  OF  THE  SEVERAL  .STATES.     65 

city,  or  by  any  board  of  warden  and  burgesses  of 
any  borough,  or  by  any  town,  the  operation,  con- 
trol, management,  repair  of  the  plant,  and  the 
manufacture,  generation  and  distribution  of  gas 
and  electricity,  including  the  purchase  of  sup- 
plies, the  hiring  and  discharge  of  employes,  and  a 
suitable  clerk  and  superintendent,  and  all  the  busi- 
ness relating  to  such  manufacture,  generation  and 
distribution,  and  to  the  methods,  amounts,  times, 
prices,  and  quality  of  supply  to  each  person  and 
corporation,  the  collection  of  bills,  the  keeping  of 
accounts,  and  the  custody  of  money  received  for 
gas  or  electricity,  or  otherw^ise,  and  the  payment  of 
bills  incurred  in  said  business.  Said  commission 
shall  consist  of  three  citizens  of  such  city,  or  town, 
or  borough,  not  holding  other  official  positions  in 
such  city,  town,  or  borough,  who  shall  be  appointed 
by  the  court  of  common  council  of  such  city,  or  b}^ 
the  selectmen  of  such  town,  or  by  the  court  of 
warden  and  burgesses  of  such  borough,  one  for  one 
year,  one  for  two  years,  and  one  for  three  years,  and 
thereafter  annually  one  commissioner  shall  be  ap- 
pointed to  serve  for  three  years.  Before  entering 
upon  the  duties  of  their  office,  they  shall  give  bonds 
to  the  city,  town  or  borough,  for  the  faithful  per- 
formance of  their  duties,  in  such  sum  and  form  and 
with  such  sureties  as  the  mayor  or  selectmen  or 
court  of  warden  and  burgesses  shall  approve.  They 
shall  on  the  first  day  of  September  of  each  year, 
5 


66  KATE    REGULATION. 

render  to  the  court  of  common  council  of  a  city, 
or  to  the  board  of  selectmen  of  a  town,  or  court  of 
warden  and  burgesses  of  a  borough,  a  detailed 
statement  of  their  doings  and  of  the  business  and 
financial  matters  in  their  charge.  They  shall  also, 
at  any  time  required  by  the  court  of  common 
council  of  a  city,  or  the  selectmen  of  a  town,  or 
court  of  warden  and  burgesses  of  a  borough,  make 
to  them  a  statement  of  their  doings,  business,  re- 
ceipts, disbursements,  balances,  and  of  their  in- 
debtedness of  the  city,  town  or  borough  in  their 
department,  in  the  detail  required,  and  they  shall 
pay  over  to  the  treasurer  of  the  city,  town  or  bor- 
ough, all  moneys  collected  in  their  department." 
(1893,  ch.  231,  p.  10.) 

Sec.  1987.  Price  charged  for  gas  or  electricity. 
"The  price  to  be  charged  to  persons  or  corpora- 
tions for  gas  or  electricity  shall  be  fixed,  and  shall 
not  be  changed  oftener  than  once  in  three  months. 
Any  change  shall  take  effect  on  the  first  day  of  the 
month,  and  the  new  price  adopted  shall,  before 
the  change  shall  take  effect,  be  advertised  at  least 
one  month  in  some  newspaper  published  in  the 
city,  town  or  borough,  where  the  plant  is,  and  if 
none  shall  be  published  therein,  then  in  some  news- 
paper published  in  the  county  where  the  plant  is. 
Such  price  shall  not  be  fixed  on  a  basis  of  less  than 
a  net  profit  per  year  of  five  per  cent  on  the  cost  of 
the  investment  in  plant  made  by  the  city,  town 


THE  STATUTES  OF  THE  SEVERAL  STATES.     67 

or  borough,  and  also  depreciation  of  the  plant  at 
not  less  than  five  per  cent  per  annum  of  its  cost, 
and  the  price  shall  not  be  greater  than  shall  allow 
a  net  profit  of  eight  per  cent  per  annum  to  the  city 
or  borough  on  such  cost.  In  fixing  such  basis  on 
which  to  estabhsh  the  price  to  be  charged  to  per- 
sons and  corporations,  the  gas  and  electricity  used 
by  the  city,  town  or  borough,  shall  be  charged  to 
it  at  cost.  A  sufficient  deposit  to  cover  the  pay- 
ment for  gas  or  electricity  for  three  months  may  be 
required  in  advance  from  any  taker,  and  the  supply 
may  be  shut  off  from  any  premises  until  all  ar- 
rearages for  gas  or  electricity  furnished  thereon 
shall  be  paid.  After  three  months'  default  in  pay- 
ment of  such  arrearages,  all  appliances  for  distribu- 
tion on  such  premises  belonging  to  the  city,  town 
or  borough,  may  be  removed,  and  after  such  re- 
moval shall  not  be  restored  except  on  payment  of 
all  such  arrearages  and  a  sufficient  sum  to  cover 
all  expenses  incurred  by  the  removal  and  restora- 
tion, with  the  penalty  which  the  city,  town  or 
borough,  may  impose  in  such  cases." 

FLORIDA. 

Laws  of  1897,  ch.  4600.  Act  to  enable  cities  and 
towns  to  manufacture  and  distribute  gas  and  elec- 
tricity, etc. 

Sec.  8.  "The   price   to   be   charged   for   gas   or 


68  RATE    REGULATION. 

electricity  to  persons  and  corporations  shall  be 
fixed  by  the  city  or  town  council,  and  shall  not 
be  changed  oftener  than  once  in  three  months." 

GEORGIA. 

The  only  law  that  can  be  found  to  bear  on  the 
point  at  bar  is  as  follows: 

Code  of  the  State  of  Georgia,  sec.  1870  (Act  of 
1894,  p.  114,  sec.  2181).  Electricity,  rent  or  sale 
of  power.  ''Any  person  or  corporation  creating 
electricity  in  this  state  may  make  contracts  and 
lease  power  or  any  part  thereof  to  any  person  or 
corporation." 

IDAHO. 

Civil  Code  (1901). 

Sec.  2294.  Must  supply  gas  on  written  applica- 
tion. ''Upon  the  application  in  writing  of  the 
owner  or  occupant  of  any  building  or  premises 
distant  not  more  than  100  feet  from  any  main  of 
the  corporation,  and  payment  by  the  applicant  of 
all  money  due  from  him,  the  corporation  must 
supply  gas  as  required  for  such  building  or  prem- 
ises, and  cannot  refuse  on  the  ground  of  any  in- 
debtedness of  any  former  owner  or  occupant  thereof, 
unless  the  applicant  has  undertaken  to  pay  the 
same.  If  for  the  space  of  ten  days  after  such 
application  the  corporation  refuses  or  neglects  to 


THE  STATUTES  OF  THE  SEVERAL  STATES.  69 

supply  the  gas  required,  it  must  pay  to  the  appU- 
cant  the  sum  of  fifty  dollars  as  liquidated  dam- 
ages and  five  dollars  a  day  as  liquidated  damages 
for  every  day  such  refusal  or  neglect  continues 
thereafter."     (1887,  Rev.  Stat.  2788.) 

ILLINOIS. 

Revised  Statutes  (1903),  p.  518. 

Sec.  167.  Price  and  quality  of  gas  to  be  furnished. 
§  11.  ''Any  corporation  purchasing  or  leasing  the 
property  of  any  company  or  companies,  or  into 
which  any  company  or  companies  are  consolidated 
or  merged  under  this  act,  shall  be  at  the  time  of 
availing  itself  of  or  accepting  the  benefits  of  this 
act,  in  the  actual  business  of  furnishing  gas  to 
consumers,  and  shall  be  subject  to  the  following 
provisions : 

''Such  corporation  shall  not  increase  the  price 
charged  by  it  for  gas  of  the  quality  furnished  to 
consumers  during  any  part  of  the  year  immedi- 
ately preceding  such  purchase  or  lease  or  such 
consohdation  and  merger."  (An  act  in  relation 
to  gas  companies,  Laws  1897,  p.  177.) 

"AN  ACT  to  confer  upon  the  City  of  Chicago  the 
power  and  authorit}^  to  sell  surplus  electricity, 
and  to  fix  the  rates  and  charges  for  the  supply 
of  gas  and  electricity  for  power,  heating  and 
lighting  furnished  b)^  any  individual,  .company 


70  RATE    REGULATION. 

or  corporation  to  said  City  of  Chicago,  and  the 
inhabitants  thereof." 

''Section  1.  Be  it  enacted  by  the  People  of 
the  State  of  llhnois  represented  in  the  General 
Assembly:  That  upon  the  adoption  of  this  act  in 
the  manner  hereinafter  provided,  the  City  of  Chi- 
cago shall  have  the  power  and  authority  to  sell 
surplus  electricity  for  heat,  light  and  power  within 
the  corporate  limits  of  said  city,  and  is  hereby 
empowered  to  prescribe  by  ordinance  maximum 
rates  and  charges  for  the  suppty  of  gas  and  elec- 
tricity for  power,  heating  and  lighting  furnished 
by  any  individual,  company  or  corporation  to  such 
city  and  the  inhabitants  thereof.  Such  rates  and 
charges  to  be  just  and  reasonable,  and  may  be 
fixed  for  a  period  not  exceeding  five  years;  and  in 
case  the  corporate  authorities  of  any  such  city 
shall  fix  unjust  and  unreasonable  rates  and  charges, 
the  same  may  be  reviewed  and  determined  by  the 
Circuit  Court  of  the  county  in  which  said  city  is 
situated:  Provided,  that  nothing  in  this  act  con- 
tained shall  be  construed  as  enlarging  the  powers 
now  conferred  by  law  upon  said  city  to  own,  con- 
struct or  acquire  electric  lighting  plants,  or  as  per- 
mitting said  city  to  sell  electricity  so  long  as  the 
same  is  needed  for  light,  heat  and  power  for  mu- 
nicipal purposes. 

''§2.  This  act  shall  not  be  in  force  until  the 
question  of  its  adoption  shall  first  have  been  sub- 


THE  STATUTES  OF  THE  SEVEKAL  STATES.     71 

mitted  to  the  electors  of  such  cit}',  and  approved 
by  a  majority  of  those  voting  thereon.  The  City 
Council  of  the  City  of  Chicago  may  direct  by  or- 
dinance that  the  question  of  the  adoption  of  this 
act  by  the  City  of  Chicago  be  submitted  to  popular 
vote  at  any  general,  city  or  special  election  in  and 
for  the  entire  city,  coming  not  sooner  than  thirty 
(30)  days  from  and  after  the  passage  of  such  ordi- 
nance. The  city  clerk  of  said  city  shall  certify 
the  passage  of  such  ordinance  to  the  proper  elec- 
tion officials,  and  it  shall  thereupon  be  the  duty 
of  such  election  officials  to  submit  the  question  of 
the  adoption  of  this  act  by  the  city  of  Chicago  to 
popular  vote.  The  city  clerk  of  the  city  of  Chi- 
cago shall  also  give  at  least  thirty  (30)  days' 
notice  of  such  election  by  publishing  a  notice 
thereof  in  one  or  more  newspapers  of  general  cir- 
culation within  such  city. 

''§3.  The  ballots  to  be  used  at  such  election 
shall  be  in  the  following  form: 

For  the  adoption  of  an  act,  entitled 
'An  Act  to  confer  upon  the  City  of  Chi- 
cago power  and  authority  to  sell  surplus  Yes 
electricity,  and  to  fix  "^  the  rates  and 
charges  for  the  supply  of  gas  or  elec- 
tricity for  power,  heating  and  lighting 
furnished  by  any  individual,  company  No 
or  corporation  to  said  City  of  Chicago 
and  the  inhabitants  thereof.' 


72  RATE    REGULATIOX. 

''If  a  majority  of  the  votes  cast  upon  said  propo- 
sition at  said  election  shall  be  voted  for  the  adop- 
tion of  this  act,  it  shall  thereby  and  thereupon  be 
adopted  by,  and  be  in  force,  in  the  city  of  Chicago. 

"Edward  D.  Shurtleff, 
^^ Speaker  of  the  House  of  Representatives. 
''Approved  May   18,   1905. 
"Charles  S.  Deneen, 

"Gover7ior.  Lawrence  Y.  Sherman, 

^^ President  of  the  Senate ^ 

INDIANA. 

Horner's  Annotated  Stattdes  (1901). 

Sec.  3106a.  City  or  town  niay  corUract  for  and 
use  electric  light.  1.  "The  common  council  of  any 
city  in  this  state,  incorporated  either  under  the 
general  act  for  the  incorporation  of  cities,  or  under 
a  special  charter,  and  the  board  of  trustees  of  all 
incorporated  towns  of  this  state,  shall  have  the 
power  to  light  the  streets,  alleys  and  other  public 
places  of  such  city  and  town  with  the  electric  light, 
or  other  form  of  light,  and  to  contract  with  any 
individual  or  corporation  for  lighting  such  streets, 
alleys,  and  other  public  places  with  the  electric 
light,  or  other  forms  of  light,  on  such  terms,  and  for 
such  times,  not  exceeding  ten  years,  as  ma}^  be 
agreed  upon." 

Sec.  3114a  provides  for  the  election  of  Electric 
Light  Commissioners  by  the  common  council  of 


THE  STATUTES  OF  THE  SEVERAL  STATES.  /  o 

incorporated  cities  having  more  than  10,000  popu- 
lation. I  can  find  nothing,  however,  as  to  the 
regulation  of  the  rates  to  be  charged. 

IOWA. 

Code  of  Iowa  (Annotated,  1897). 

Sec.  695.  Cities  and  towns  are  bodies  corporate. 
Authority  vested  in  mayor  and  common  council. 

Sec.  720.  Water  or  gas  works — Electric  plants. 
Cities  and  towns  authority  to  purchase,  lease,  etc. 

Sec.  725,  Regulation  of  rates  and  service.  ^'They 
(cities  and  towns)  shall  have  power  to  require  every 
individual  or  private  corporation  operating  such 
works  or  plant,  subject  to  reasonable  rules  and 
regulations,  to  furnish  any  person  applying  there- 
for, along  the  line  of  its  pipes,  mains,  wires,  or  other 
conduits,  with  gas,  water,  light  or  power,  and  to 
supply  said  cit}^  or  town  with  water  for  fire  pro- 
tection, and  with  gas,  water,  light  or  power  for 
other  necessary  public  purposes,  and  to  regulate 
and  fix  the  rent  or  rate  for  water,  gas,  light  or 
power;  to  regulate  and  fix  the  rents  or  rates  of 
water,  gas  and  electric  light  or  power;  to  regulate 
and  fix  the  charges  for  water  meters,  gas  meters, 
electric  light  or  power  meters,  or  other  device  or 
means  necessary  for  determining  the  consumption 
of  water,  gas,  electric  light  or  power,  and  their 
powers  shall  not  be  abridged  by  ordinance,  resolu- 
tion or  contract." 


74  RATE    REGULATION. 

K\XSAS. 

General  Statutes  oj  Kansas  (1901  j.  Light,  Heat 
and  Power  Franchises. 

Sec.  653  pro\'ides  for  private  corporation  stip- 
phTJig  light,  etc.,  to  cities  in  accordance  with  pro- 
visions of  tMs  act. 

Sec.  654.  Authorities  may  contract.  §  51.  "The 
municipal  authorities  of  any  city  of  the  first,  sec- 
ond or  third  class  in  this  state  in  which  any  such 
private  corporation  now  exists,  and  which  may  now 
or  hereafter  manufacture.  seU  or  furnish  gas  fight, 
electric  fight,  electric  power,  water  or  heat  to  such 
city  and  its  citizens,  is  hereby  authorized  to  con- 
tract with  any  such  corporation  for  the  fighting 
of,  and  for  .supph-ing  power,  water  or  heat  to. 
pubfic  or  private  biuldtngs  and  other  places,  and 
for  aU  purposes  necessar}'  in  any  such  city,  and  to 
fix  aU  charges  therefor,  upon  the  conditions  im- 
posed in  this  act."' 

Sec.  655.  Renewal — Statement  of  costs.  §  52.  "As 
a  condition  precedent  to  procure  a  renewal  or  origi- 
nal grant,  lease  or  contract  from  any  city  of  the 
first,  second  or  third  class  in  this  state  to  furnish 
the  mimicipafity  or  its  citizens  vnxh.  fight,  power, 
water  or  heat,  such  private  corporation,  by  its 
resident  president  and  secretary-,  or  resident  man- 
ager or  other  ofl&cers,  shaU  furnish  a  detailed  and 
accurate  statement  of  aU  items  and  kinds  of  items 


THE  STATUTES  OF  THE  VARIOUS  STATES.  75- 

of  material,  and  the  then  present  vahie  of  material, 
used  in  constructing,  or  to  be  used  in  constructing, 
its  plant,  where  used,  or  to  be  used,  as  well  as  a 
description  and  statement  of  the  then  present  value 
of  the  real  estate  necessarily  owned  and  used,  or 
to  be  acquired  by  said  corporation  in  operating 
its  plant,  which  detailed  statement  shall  give  date 
of  purchase  of  each  item,  from  whom  purchased, 
price  paid,  or  to  be  paid,  and  the  then  actual  present 
value  thereof,  and  also  a  particular  statement  of 
the  items  paid  out  for  labor,  to  whom  paid,  or 
estimated  amount  to  be  paid,  in  the  construction 
of  said  plant,  as  accurately  as  can  be  done;  w^hich 
statement  or  estimate  must  be  sworn  to  by  said 
officers  or  manager,  and  filed  with  the  clerk  of  such 
city  for  inspection  of  an}'  citizen  thereof,  and  after 
public  notice  of  such  filing  and  the  purpose  thereof, 
in  some  newspaper  of  general  circulation  in  such 
city,  giving  the  date  when  such  grant  or  lease  will 
be  applied  for,  at  least  fort}'  days  before  any  re- 
newal, grant,  lease  or  contract,  or  original  grant, 
lease  or  contract,  is  made  with  any  such  corpora- 
tion by  such  city,  permitting  the  corporation  to 
use  the  streets,  alleys,  roadways  or  squares  of 
such  city." 

Sec.  656.  Reservation — Exception — Income.  §  53. 
''No  renewal  or  original  grant,  lease  or  contract 
shall  be  made  with  any  such  private  corpora- 
tion by  any  city   of  this  state  without  reserving 


76  RATE     REGULATION. 

rents  and  providing  for  the  collection  of  the  annual 
rental  value  for  the  use  of  its  streets,  alleys, 
roadways  or  squares,  which  shall  be  done  and  as- 
certained by  allowing,  first,  legitimate  expenses  of 
conducting  such  corporation's  plant,  including  all 
necessary  repairs,  and  second,  by  allowing  interest 
at  the  rate  of  not  more  than  six  per  cent  per  annum 
on  the  capital  invested,  as  ascertained  under  the 
provisions  of  the  preceding  section,  unless  the 
council  and  mayor  are  petitioned  to  allow  a  greater 
rate  than  six  per  cent  by  at  least  three-fifths  of  the 
bona  fide  taxpayers  of  such  city,  based  on  the  last 
assessment  rolls,  which  expenses  and  per  cent  of 
the  capital  invested,  being  deducted  from  the  gross 
earnings  of  said  corporation,  such  municipality 
shall,  through  its  proper  officers,  collect  the  net 
balance  of  said  earnings  as  rentals  for  the  use  of 
the  streets  and  alleys,  roadways  and  squares  of 
such  city,  and  as  the  city's  income  on  the  fran- 
chise leased  by  said  municipality  to  any  such  cor- 
poration; and  as  such  rentals,  said  net  proceeds 
shall  be  paid  into  the  treasury  of  such  city  on  the 
first  day  of  January  and  July  of  each  year,  after 
the  making  of  such  grant,  lease  or  contract  for  the 
operation  of  such  plant." 

(There  are  other  provisions  regulating  ap- 
peals, etc.,  and  the  acquirement  of  plants  by 
cities,  but  there  do  not  seem  to  be  any  pro- 
visions regulating  rates.) 


THE  STATUTES  OF  THE  VARIOUS  STATES.  77 

Laws  of  Kansas,  1903,  ch.  236,  provides  for  the 
erection  of  electric  plants  by  institutions  of  learn- 
ing, which  may  also  supply  the  city  and  its  inhabi- 
tants where  located,  and  it  further  provides  for  the 
collection  ''from  such  consumers  (city  and  its  in- 
habitants) the  reasonable  or  contract  value  of  the 
light,  heat  or  power  so  furnished." 

MASSACHUSETTS. 

Revised  Laws  of  Massachusetts  (1902),  ch.   121. 

Sec.  33.  ''Upon  the  petition  in  writing  of  am^ 
person  who  has  a  residence  or  place  of  business  m 
a  city  or  town  in  which  a  corporation  or  company 
is  engaged  in  the  manufacture  and  sale  of  gas  or 
electricity  for  light  or  heat,  and  who  is  aggrieved 
by  the  refusal  or  neglect  of  such  corporation  or 
company  to  supply  him  with  gas  or  electricity,  the 
board  of  gas  and  electric  light  commissioners  may, 
after  notice  to  the  corporation  or  company  to  ap- 
pear, at  a  time  and  place  therein  named,  to  show 
cause  why  the  prayer  of  such  petition  should  not 
be  granted,  issue  an  order  directing  and  requiring 
the  corporation  or  company  to  supply  the  peti- 
tioner with  gas  for  either  of  said  purposes  or  with 
electric  light,  upon  such  terms  and  conditions  as 
are  legal  and  reasonable." 

Sec.  34.  "Upon  the  complaint  in  writing  of  the 
mayor  of  a  city,  or  the  selectmen  of  a  town,  in 
which  a  corporation  or  company  engaged  in  the 


78  RATE     REGULATION. 

manufacture  or  sale  of  gas  or  electricity  for  light 
or  heat  is  located,  or  of  twenty  customers  thereof, 
either  of  the  quality  or  price  of  the  gas  or  electric 
light  sold  and  delivered,  the  board  shall  notify  the 
corporation  or  company  by  leaving  at  its  office  a 
copy  of  such  complaint  and  shall  thereupon,  after 
notice,  give_a  public  hearing  to  such  petitioner  and 
such  corporation  or  company,  and  after  said  hear- 
ing may  order  any  reduction  in  the  price  of  gas  or 
electric  light  or  improvement  in  quality  thereof, 
and  a  report  of  such  proceedings  and  the  result 
thereof  shall  be  included  in  its  annual  report.  The 
maximum  price  fixed  by  such  order  shall  not  there- 
after be  increased  by  such  corporation  or  company 
except  as  provided  in  the  following  section." 

Sec.  35.  ''A  gas  company  in  this  commonwealth 
which  furnishes  gas  under  the  provisions  of  general 
or  special  laws  or  of  any  contract  with  a  city  or 
town,  and  a  gas  or  electric  hght  company  which  is 
engaged  in  the  sale  and  delivery  of  electric  light 
may  apply  to  the  board  to  fix  and  determine  the 
price  of  gas  or  electricity  to  be  thereafter  sold  and 
delivered  by  said  company,  or  to  revise  any  former 
order  or  action  of  said  board  relative  to  the  quality 
or  price  thereof.  Said  board  shall,  after  notice, 
give  a  public  hearing  to  the  petitioner,  to  the  city 
or  town  and  to  all  other  persons  interested,  and 
thereafter  may  pass  such  orders  relative  to  the 
price  and  quaUty  of  the  gas  or  electricity  thereafter 


THE  STATUTES  OF  THE  VARIOUS  STATES.  79 

to  be  furnished  by  said  company  as  it  determines 
are  just  and  reasonable.  Such  orders  shall  be  bind- 
ing upon  all  parties  until  further  order  of  the  said 
board." 

(The  official  title  of  the  board  is:  Board  of 
Gas  and  Electric  Light  Commissioners,  Bos- 
ton, Mass.) 

MICHIGAN. 

Compiled  Laws  of  Michigan  (1897),  vol.  1. 

"An  act  to  authorize  the  cities  and  villages  of 
this  state  to  provide  for  the  lighting  of  their  streets 
and  other  public  places  therein,  by  means  of  elec- 
tric or  other  lights." 

(3437)  Sec.  1.  "The  people  of  the  state  of  Michi- 
gan enact,  that  it  shall  be  lawful  for  any  city  or 
incorporated  village  in  this  state,  to  acquire  by 
purchase  or  to  construct,  operate  and  maintain 
works  for  the  purpose  of  supplying  such  cities  or 
villages  and  the  inhabitants  thereof  with  gas, 
electric  or  other  lights,  or  to  contract  for  the 
furnishing  thereof  at  such  times  and  on  such  terms 
and  conditions  as  the  common  council  of  any  such 
city  or  the  board  of  trustees  in  any  such  village 
shall  direct." 

(3438)  Sec.  2.  "Whenever  the  common  council 
of  any  city  or  the  board  of  trustees  of  any  village 
shall  by  resolution  declare  that  it  is  expedient  for 


80  RATE    REGULATION. 

such  city  or  village  to  acquire  b}^  purchase  or  to 
construct,  as  the  case  may  be,  works  for  the  pur- 
pose of  supplying  such  city  or  village  and  the  in- 
habitants thereof  with  gas,  electric  or  other  lights, 
or  when  such  common  council  shall  deem  it  ex- 
pedient to  contract  for  the  lighting  of  such  cities 
and  villages  with  electric  or  other  lights,  then  such 
common  council  or  the  board  of  trustees  of  any 
village  or  city  shall  have  power  to  take  such  action 
as  shall  be  deemed  expedient  to  accomplish  such 
purpose:  Provided  such  action  shall  be  governed 
by  the  provisions  of  act  number  five  of  the  session 
laws  of  one  thousand  eight  hundred  and  seventy, 
approved  August  fourth,  1870,  as  amended,  en- 
titled, 'An  act  to  authorize  the  introduction  of 
water  into  and  the  construction  or  purchase  of 
hydraulic  works  in  the  cities  and  villages  of  the 
state  of  Michigan,'  l^eing  sections  3096  to  3109  of 
Howell's  Annotated  Statutes,  and  all  the  provisions 
of  that  act,  so  far  as  the  same  shall  be  material,  shall 
apph'  to  and  have  full  force  and  operation  in  the 
case  of  cities  and  villages  desiring  to  have  the  bene- 
fit of  this  act,  in  the  same  manner  and  to  the  same 
effect  as  in  the  case  of  cities  and  villages  proposing 
to  purchase  or  construct  works  for  the  purpose  of 
supplying  such  city  or  village,  or  the  inhabitants 
thereof,  with  w^ater:  Provided  that  all  contracts  for 
lighting  such  cities  or  villages  as  hereinbefore  pro- 
vided shall  be  for  a  period  not  less  than  three  nor 


THE  STATUTES  OF  THE  VARIOUS  STATES.     81 

more  than  ten  years:  And  provided  further  that 
such  contract  shall  be  entered  into  in  the  manner 
prescribed  by  the  charter  of  such  city  or  village  for 
the  letting  of  contracts  for  public  lighting:  Pro- 
vided further  that,  in  case  any  such  common  coun- 
cil or  board  of  trustees  shall  declare  that  it  is 
expedient  for  such  city  or  village  to  acquire  by 
purchase  or  to  construct,  as  the  case  may  be,  works 
for  the  purpose  of  supplying  such  city  or  village 
with  electric  or  other  lights,  then  such  common 
council  or  board  of  trustees  shall  submit  to  the 
electors  of  the  city  or  village  the  question  of  pur- 
chasing or  constructing  such  works  before  any 
further  proceedings  are  had,  and  no  further  pro- 
ceedings shall  be  had  by  such  common  council  or 
board  of  trustees  unless  a  majority  of  such  electors 
vote  for  the  purchasing  or  constructing  of  such 
works." 

(The  act  referred  to  in  this  section  will  be 
found  in  sees.  3416-3435.) 

''An  act  to  authorize  the  introduction  of  water 
into  and  the  construction  or  purchase  of  hydraulic 
works  in  the  cities  and  villages  in  the  state  of 
Michigan." 

(3419)  Sec.  4. -''It  shall  be  lawful  for  the  com- 
mon council  of  any  city  or  the  corporate  authorities 
6 


82  KATE    REGULATION. 

of  any  village  which  shall  avail  itself  of  the  provi- 
sions of  this  act  b}'  the  passage  of  proper  ordinances 
to  provide  for  the  appointment  of  a  commission  or 
board,  the  terms  of  at  least  one  member  of  which 
commission  or  board  shall  expire  yearly,  to  take 
the  charge  and  management  of  such  water  works 
in  the  manner  and  to  the  extent  which  shall  be 
provided  in  the  ordinances  of  the  city  or  village; 
and  the  common  council  of  any  city  or  the  corpo- 
rate authorities  of  any  village  may  by  resolution 
or  ordinance  fix  the  rates  for  supplying  water  to 
the  inhabitants  thereof,  regulate  the  manner  of 
making  connections  and  the  use  of  the  water,  which 
rules  and  regulations  shall  apply  equally  to  all  the 
inhabitants  of  such  city  or  village." 

MINNESOTA. 

Statutes  of  Minnesota  (1894),  vol.  1,  sec.  2592. 

Works  of  internal  improvement — Who  may  he  in- 
corporated— Powers — Restrictio7is — Right  of  purchase 
by  city  or  village,  when. 

''Any  number  of  persons,  not  less  than  five,  may 
associate  for  incorporation  and  become  incorporated 
under  and  according  to  this  title  for  the  construc- 
tion, maintenance  and  operation  of  any  work  or 
works  of  internal  improvement  requiring  the  tak- 
ing of  private  property,  or  any  easement  therein, 
for  pubhc  use,  including  railways,  telegraph  lines, 
canals,  slack-water  or  other  navigation  upon  any 


THE  STATUTES  OF  THE  VARIOUS  STATES.     OO 

water  course,  bay  or  lake,  dams  to  improve  or 
create  a  water  supply  or  power  for  public  use,  and 
any  work  or  works  with  all  requisite  subways,  pipes 
and  other  conduits  for  supplying  the  public  with 
water,  gas  light,  electric  light,  heat  or  power;  and 
any  citizens  of  the  United  States,  not  less  than  nine 
in  number,  owning  any  railway  now  or  hereafter 
constructed  for  public  use  within  this  state  for 
transportation  of  persons  or  property,  or  organized 
for  the  purpose  of  maintaining  and  operating  under 
any  lease  or  contract,  a  railroad  constructed  for 
like  public  use,  may,  by  making  and  filing  articles 
of  association  under  and  according  to  this  title, 
acquire  and  enjoy  the  rights,  powers,  privileges  and 
franchises  hereinafter  granted,  and  may,  by  filing 
in  the  office  of  Secretary  of  State  a  resolution  of 
such  corporation  expressing  its  intent  to  construct, 
maintain  and  operate  any  branch  line,  become  em- 
powered to  construct,  maintain  and  operate  the 
same  in  connection  with  its  main  line,  subject, 
however,  to  the  provisions  of  this  title  and  the 
general  laws  of  this  state,  and  any  corporation 
formed  hereunder  may  contract,  maintain  and 
operate  telegraph  hues  along  or  over  its  lines  of 
railroad,  and  that  corporation  formed  hereunder, 
or  under  any  act  hereby  amended,  may  charge  and 
collect  a  reasonable  compensation  for  its  service. 
But  no  corporation  formed  under  this  title  shall 
have  any  right  to  construct,  maintain  or  operate 


84  RATE    REGULATION. 

upon  or  within  any  street,  alleys  or  other  high- 
way of  any  city  or  village,  a  railway  of  any  kind, 
or  any  subway,  pipe-line  or  other  conduit  for  sup- 
plying the  public  with  water,  gas  light,  electric 
hght,  heat,  power  or  transportation  of  any  im- 
provement of  whatsoever  nature  or  kind,  without 
first  obtaining  a  franchise  therefor  from  such  city 
or  village  according  to  the  terms  of  its  charter,  and 
without  first  making  just  compensation  therefor 
as  herein  provided.  Provided,  that  the  state  of 
Minnesota  shall  at  all  times  have  full  power  and 
authority  to  supervise  and  regulate  the  business 
methods  and  management  of  any  corporation  ex- 
isting and  operating  hereunder,  and  shall  also  have 
full  power  and  authority  at  all  times  to  fix  the 
compensation  which  shall,  or  may  be  charged  or 
received  by  any  corporation  existing  and  operating 
hereunder.  And  any  corporation  organized  under 
this  act  shall  be  subject  to  any  condition  from  time 
to  time  imposed  b}^  such  village  or  city,  through 
its  Board  of  Trustees  or  City  Council.  And  pro- 
vided further,  that  the  common  council  of  any  city, 
and  the  l)oard  of  trustees  of  any  village  at  the  end 
of  each  and  every  five  years  from  and  after  the 
granting  of  the  franchise  for  the  construction  of  any 
street  railway,  telephone,  water  works,  gas  and 
electric  light,  heat  or  power  works,  or  any  or  all 
of  them,  shall  have  the  right,  when  authorized  so 
to  do  by  a  two-thirds  vote  of  the  electors  of  such 


THE  STATUTES  OF  THE  VARIOUS  STATES.     85 

municipality  as  hereinafter  provided,  to  acquire 
the  same  by  purchase,  and  thereafter  operate  the 
same  upon  paying  to  the  company,  corporation  or 
person  owning  the  franchise  the  full  and  true  cost 
and  value  thereof,  to  be  determined  by  the  usual 
proceedings  for  acquiring  public  property  for  pub- 
lic use  under  the  right  of  eminent  domain  upon 
petition  of  the  authorities  of  such  municipality. 
Except  that  none  of  the  commissioners  so  appointed 
to  appraise  the  same  shall  be  residents  of  said 
municipality,  and  except  further,  that  all  the 
property,  if  any  thereof,  owned  by  the  corporation 
in  interest  under  antl  in  connection  with  said  fran- 
chise shall  be  included  in  such  proceeding  and 
purchased  and  acquired  hereunder.  Before  any 
such  property  shall  be  acquired  by  any  munici- 
pality, or  such  proceedings  be  instituted,  the  propo- 
sition to  acquire  the  same  shall  be  submitted  to  a 
vote  of  the  electors  of  said  municipality  at  a  special 
election  called  for  that  purpose  within  the  three 
months  immediately  prior  to  the  expiration  of  any 
five  years  of  said  franchise,  and  then  only  when 
authorized  by  two-thirds  of  the  votes  cast  at  said 
election.  The  consideration  paid  for  any  such 
works  or  property  acquired  under  this  provision 
shall  be  first  applied  to  the  payment  of  any  bonds 
upon  the  property  or  works  acquired,  and  the 
balance,  if  any,  to  the  person,  company  or  corpora- 
tion owning  said  franchise." 


8G  RATE    KEGULATION. 

(G.  S.  1866,  c.  34,  sec.  1,  as  amended  1875, 
c.  14,  sec.  1 ;  G.  S.  1878,  c.  34,  sec.  1 ;  1885,  c.  18; 
1887,  c.  161;  1889,  c.  221;  1893,  c.  74,  sec.  1.) 
See  In  re  St.  Paul  &  N.  P.  Ry.  Co.,  36  Minn. 
85;  30  N.  W.  Rep.  432. 

Sec.  1299,  Art.  38.  Manufacture  and  sale  of  gas. 

''To  regulate  and  control  the  quality  and  meas- 
urement of  gas ;  to  prescribe  and  enforce  rules  and 
regulations  for  the  manufacture  and  sale  of  gas; 
to  provide  for  the  inspection  of  gas  and  gas  meters, 
and  to  appoint  an  inspector  and  prescribe  his  duties ; 
also  to  establish  and  maintain  gas  works  within  the 
village." 

Laws  of  Minnesota,  1901,  ch.  199. 

''An  act  to  authorize  and  empower  cities  in  this 
state  having  a  population  of  not  less  than  ten 
thousand  and  not  more  than  fift}-  thousand,  to 
construct,  erect  or  purchase  electric  light  plants  in 
such  cities,  and  to  authorize  and  empower  such 
cities  to  issue  their  bonds  for  such  purpose." 
"Be  it  enacted  by  the  Legislature  of  the  State  of  Minne- 
sota: 

"Section  1.  That  each  city  in  the  state  of  Minne- 
sota, having  not  less  than  ten  thousand  and  not 
more  than  fifty  thousand  inhabitants,  is  hereby 
authorized  and  empowered  by  an  affirmative  vote 
of  two-thirds  of  all  the  members  of  its  city  council 
to  construct,  erect  or  purchase  an  electric  light  plant 


THE  STATUTES  OF  THE  VARIOUS  STATES.     87 

to  be  operated  by  such  city  for  the  hghting  of  its 
pubHc  streets,  alleys,  lanes,  parks  and  public 
grounds,  and  for  such  other  municipal  purposes 
and  uses  requiring  light  or  power,  aB  the  city 
council  of  such  city  may  direct;  and  for  such  use 
and  benefit  of  the  inhabitants  of  such  cit}^,  and 
upon  such  conditions  as  the  city  council  of  such 
city  may  from  time  to  time  by  ordinance  prescribe. 

''§2.  That  each  such  city  is  hereb}"  authorized 
and  empowered  by  an  affirmative  vote  of  two- 
thirds  of  all  the  members  of  its  city  council  to  issue, 
in  addition  to  all  bonds  heretofore  authorized  to  be 
issued  by  such  city,  its  bonds  in  an  amount  to  be 
determined  by  said  council,  not  exceeding  in  the 
aggregate  forty  thousand  dollars,  for  the  aforesaid 
purpose  of  constructing,  erecting  or  purchasing  an 
electric  light  plant  in  such  city. 

''§3.  Said  bonds  shall  be  for  the  principal  sum  of 
one  thousand  (1,000)  dollars  each,  and  shall  be 
payable  at  such  time  and  at  such  place  as  the  city 
council  may  designate,  any  provision  of  anj^  law 
of  this  state,  whether  general  or  special,  governing 
such  city,  to  the  contrary  notwithstanding;  and  the 
faith  and  credit  of  such  city  issuing  the  same  is 
hereby  irrevocably  pledged  to  the  payment  of  the 
same  Said  bonds  shall  be  made  payable  to  bearer 
or  to  the  order  of  the  person  or  corporation  to  whom 
they  may  be  delivered,  as  the  city  council  of  such 
city  may  deem  best,  shall  draw  interest  payable 


8b  RATE    REGULATION. 

semi-annually  at  such  place  as  the  city  council  may 
determine,  at  a  rate  not  exceeding  four  per  cent 
per  annum,  to  be  represented  by  coupons  attached 
to  said  bonds.  Said  bonds  shall  be  signed  by  the 
mayor  and  attested  by  the  recorder  or  clerk  of  such 
city,  and  the  corporate  seal  of  the  city  shall  be 
imprinted  upon  said  bonds,  and  said  coupons  shall 
be  signed  by  said  receiver  or  clerk. 

"§4.  The  city  council  of  such  city  shall  have 
authority,  by  an  affirmative  vote  of  two-thirds  of 
all  its  members,  to  negotiate  the  sale  of  such  bonds 
in  such  manner  as  in  its  judgment  shall  best  sub- 
serve the  interests  of  said  city;  but  it  shall  not 
negotiate  a  sale,  nor  sell  said  bonds,  or  any  of  them, 
at  less  than  their  par  value  and  accrued  interest; 
and  neither  the  said  bonds,  nor  the  proceeds  from 
the  sale  thereof,  shall  be  used  for  any  other  purpose 
than  that  heretofore  specified,  and  such  purpose 
shall  be  distinctly  stated  in  the  resolution  or  ordi- 
nance authorizing  their  issue. 

"  §  5.  This  act  shall  take  effect,  and  be  in  force 
from  and  after  its  passage." 

Approved   April    10,    1901. 

Laws  of  Minnesota,  1903,  ch.  144. 

An  act  entitled  "An  act  authorizing  any  city 
of  this  state,  now  or  hereafter  having  a  population 
of  over  fifty  thousand  inhabitants,  to  make  con- 
tracts for  the  purchase  of  a  supply  of  electric  power 


THE  STATUTES  OF  THE  VARIOUS  STATES.  89 

or  of  gas,  or  both,  for  operating  an  electric  or  gas 
lighting  or  heating  plant  or  system,  or  both  such 
plants  or  systems,  owned  by  such  cit3^" 
^^Be  it  enacted  by  the  Legislature  of  the  State  of  Min7ie- 
sota: 

'^  Section  1.  That  any  city  of  this  state,  now  or 
hereafter  having  a  population  of  over  fifty  thousand 
inhabitants,  and  at  the  same  time  owning  an  elec- 
tric or  gas  lighting  or  heating  plant  or  system  shall 
be  authorized  and  empowered  to  enter  into  a  con- 
tract, or  contracts,  for  the  purchase  by  such  city  of 
electricity  or  gas  for  the  purpose  of  operating  such 
electric  or  gas  lighting,  or  heating  plant,  or  system, 
owned  by  such  city,  or  for  operating  both  such 
plants  or  systems,  upon  such  terms  as  may  be 
approved  by  a  three-fourths  vote  of  all  of  the 
members-elect  of  the  governing  body  thereof;  pro- 
vided, that  such  city  shall  not  be  authorized  to 
agree  by  such  contract  for  the  payment  of  a  higher 
price  than  the  lowest  price  charged  at  the  time  by 
the  person  or  corporation  with  whom  such  con- 
tract is  made,  for  a  like  amount  of  electric  power 
or  gas  furnished  to  any  other  person  or  corporation 
under  similar  circumstances;  and  provided  further, 
that  such  contract  shall  not  be  made  to  run  for  a 
period  exceeding  ten  years. 

''  §  2.  The  obligation  incurred  by  any  such  city 
in  the  making  of  such  contract  shall  not  be  con- 
sidered as  a  part  of  its  indebtedness  under  the  pro- 


90  RATE    REGULATION. 

vision  of  its  governing  charter,  or  of  any  law  of  this 
state  fixing  a  limit  of  indebtedness  for  such  city; 
nor  shall  such  city  be  required  at  any  time  before 
making  or  during  the  life  of  such  contract  to  provide 
for  or  have  on  hand  in  its  treasur}^  more  money 
applicable  to  such  contract  than  the  amount  to  be 
paid  thereon  during  a  single  year. 

''§3.  This  act  shall  take  effect  and  be  in  force 
from  and  after  its  passage. 

Approved  April  6,  1903. 

MISSISSIPPI. 

"Mississippi  Annotated  Code  of  Law  (1892). 

Municipalities:  Sec.  2923.  Each  a  municipal 
corporation :  Powers,  etc . 

Each  city,  town  or  village  which  is  incorporated 
shall  be  governed  b}'  the  provisions  of  this  chap- 
ter, and  shall  be  a  municipal  corporation  with  power 

1st.  To  sue  and  be  sued. 

2d.  To  purchase  and  hold  real  estate  and  per- 
sonal property.  To  purchase  and  hold  real  estate 
within  the  corporate  limits  for  all  proper  municipal 
purposes,  and  for  parks,  cemeteries,  hospitals, 
school-houses,  houses  of  correction,  water  works, 
electric  lights  and  sewers.  Lands  without  the  cor- 
porate limits  may  be  owned  under  purchase,  grant 
or  devise  heretofore  or  hereafter  made. 

3d.  To  sell  and  convey  any  real  or  personal  estate 
owned  by  it,  and  to  make  such  order  respecting  the 


THE  STATUTES  OF  THE  VARIOUS  STATES.  91 

same  as  may  be  deemed  conducive  to  the  interest 
of  the  municipahty,  and  to  exercise  jurisdiction 
over  the  same. 

4th.  To  make  all  contracts,  and  to  do  all  other 
acts  in  relation  to  the  property  and  concerns  of 
the  municipality  necessary  to  the  exercise  of  its 
corporate   or  administrative  powers." 

5th.  To  exercise  such  other  or  further  powers 
as  are  herein  conferred. 

Sec.  2933.  Pipes  and  Conduits.  ^^ To  grant  to  any 
person  or  corporation  the  use  of  the  streets,  alleys 
and  public  grounds  for  the  purpose  of  laying  gas, 
water,  sewer  or  steam  pipes,  or  conduits  for  electric 
light  to  be  used  in  furnishing  or  supplying  the 
municipality  and  inhabitants,  or  any  person  or 
corporation,  with  gas,  water,  sewerage,  steam  or 
hot  air  for  heating  purposes  or  light;  but  a  fran- 
chise right  of  way  or  privilege  of  any  character 
whatever  shall  not  be  granted  for  a  longer  period 
than  twenty-five  years,  and  such  privilege  shall 
not  be  exclusive." 

Sec.  3014.  Municipal  Bonds.  ''The  mayor  and 
board  of  aldermen  for  the  purpose  of  raising  money 
for  the  erection  of  hospital  and  school  buildings, 
and  the  purchase  of  such  buildings  or  land  thereon 
and  the  improvement  and  adornment  thereof,  for 
the  erection  or  purchase  of  water  works,  gas,  elec- 
tric light  and  other  plants,  the  establishment  of  a 
sewerage  system,  the  protection  of  the  municipality 


92  RATE    KEGULATION. 

from  overflow,  from  caving  banks  and  other  like 
damages,  improving  or  paving  streets,  and  for  the 
liquidation  of  existing  debts  of  the  mmiicipality 
may  issue  the  bonds  or  other  obligations  of  the 
city,  town  or  village,  not  to  exceed  in  amount,  in- 
cluding all  outstanding  bonds,  seven  per  centum 
of  the  assessed  value  of  the  taxable  property  of  the 
municipality  unless  authorized  by  two-thirds  of 
the  qualified  electors  thereof;  but  in  no  case  shall 
the  amount  issued  exceed  ten  per  centum  of  the 
assessed  value.  But  the  limit  on  the  amount  shall 
not  apply  to  bonds  or  other  obligations  issued  on 
liquidation,  or  to  raise  funds  to  liquidate  any  in- 
debtedness existing  when  this  chapter  becomes 
operative." 

Laws  of  Mississippi,  1904,  ch.  182. 

"An  act  to  enable  cities,  towns  and  villages  in- 
corporated under  any  general  or  special  laws  of 
this  state  to  fix  the  rates  and  charges  for  the  supply 
of  water,  electric  light  or  gas  furnished  by  any  in- 
dividual, company  or  corporation  to  any  such  city, 
town  or  village  and  the  inhabitants  thereof." 

Rates  and  Charges  for  water  supplied  by  water 
companies:  Municipal  Boards  may  regulate  same. 

Sec.  1.  "Be  it  enacted  by  the  legislature  of  the 
state  of  Mississippi  that  the  corporate  authorities 
of  any  city,  town  or  village,  now  or  hereafter  in- 
corporated under  any  general  or  special  law  of  this 


THE  STATUTES  OF  THE  VARIOUS  STATES.     93 

state,  in  which  any  individual,  company  or  corpo- 
ration has  been  or  hereafter  may  be  authorized  by 
such  city,  town  or  village  to  supply  water,  electric 
light  or  gas  to  such  city,  town  or  village  and  the 
inhabitants  thereof,  be  and  are  hereby  empowered 
to  prescribe  by  ordinance  maximum  rates  and 
charges  for  the  supply  of  water,  electric  light  or 
gas  furnished  by  such  individual,  company  or  cor- 
poration to  such  city,  town  or  village  and  the 
inhabitants  thereof;  such  rates  and  charges  to  be 
just  and  reasonable.  And  in  case  the  corporate 
authorities  of  any  such  city,  town  or  village  shall 
fix  unjust  and  unreasonable  rates  and  charges,  the 
same  may  be  reviewed  and  determined  by  the 
chancery  court  of  the  county  in  which  such  city, 
town  or  village  may  be :  Provided  this  act  shall  not 
be  construed  so  as  to  impose  the  effect  or  obliga- 
tion of  any  vahd  or  binding  contract  with  any 
water  works  company,  electric  light  company  or 
gas  company  now  existing,  or  heretofore  made 
with  any  individual,  or  water  company  or  electric 
light  or  gas  company. 

Sec,  2.  ''  That  this  act  shall  be  in  force  and  take 
effect  from  and  after  its  passage." 

Approved  March  19,   1904. 

MISSOURI. 

Revised  Statutes  of  1899. 

Section  1341.  Gas,    Electric    and    Water    Com- 


94  IJATE     REGULATION. 

'panics;  Power  of.  ''Aii}^  corporation  formed  under 
the  provisions  of  this  article  for  the  purpose  of 
supplying  an}'  town,  city  or  village  with  gas,  elec- 
tricity or  water  shall  have  full  power  to  manu- 
facture and  sell  and  to  furnish  such  quantities  of 
gas,  electricity  or  water  as  may  be  required  in  said 
town  or  village,  district  or  neighborhood  where 
located  for  public  or  private  buildings,  or  for  other 
purposes;  and  such  corporation  shall  have  the 
power  to  lay  the  conductors  for  conveying  gas, 
electricity  or  water  through  the  streets,  lanes, 
allej^s  and  squares  of  any  city,  town  or  village  with 
the  consent  of  the  municipal  authorities  thereof 
and  under  such  reasonable  regulations  as  said  au- 
thorities may  prescribe." 

§  1342.  Authority  of  Municipalities  to  Contract, 
etc.  ''  The  municipal  authorities  of  any  city,  town 
or  village  are  hereby  authorized  to  contract  with 
any  such  corporation  for  the  lighting  by  gas, 
electricity,  or  supplying  with  water  the.  streets, 
lanes,  alleys,  squares  and  public  places  in  any  such 
city,  town  or  village.  Municipal  authorities  of  any 
city,  town  or  village  in  which  any  water  company 
shall  be  organized  under  this  article  ma}^  contract 
w^th  any  such  company  for  the  purpose  of  supply- 
ing with  water  the  streets,  lanes,  alleys,  squares 
and  public  places  in  any  such  city,  town  or  village 
for  any  length  of  time  which  shall  be  agreed  upon 
between  such  city,  town  or  village  and  such  com- 


THE  STATUTES  OF  THE  VARIOUS  STATES.  9-J 

pany  for  a  term  not  to  exceed  twenty  years;  and 
the  provisions  of  this  section  shall  apply  to  all 
cities,  towns  and  villages  in  this  state  whether  or- 
ganized by  special  charter  or  under  the  general 
laws  of  the  state,  any  provisions  in  any  special 
charter  of  any  city,  town  or  village  in  the  state 
to  the  contrary  notwithstanding:  Provided,  that 
contracts  entered  into  under  the  provisions  of  this 
act  shall  have  no  legal  form  (force)  until  the  same 
shall  be  submitted  to  a  vote  of  the  qualified  voters 
at  a  general  or  special  election  of  such  city,  town 
or  village,  and  shall  be  ratified  by  a  two-thirds 
majority  of  the  legal  voters  polled  at  said  election." 

NEBRASKA. 

C abbey's  Annotated  Statutes  of  Nebraska,  ch.  37, 
art.  I. 

Omaha  Charter.  Sec.  7599.  Street  Lighting. 
'The  mayor  and  council  shall  have  full  power  to 
regulate  and  provide  for  the  lighting  of  streets, 
laying  down  gas,  water  and  other  pipes,  and  erec- 
tion of  lamp  posts,  electric  posts  or  other  appa- 
ratus; and  to  regulate  the  sale  and  use  of  gas  and 
electric  lights,  and  fix  and  determine  the  price  of 
gas,  the  charge  of  the  electric  lights  and  power  and 
the  rents  of  gas  meters  within  the  city,  and  regulate 
the  inspection  thereof;  and  regulate  telephone  ser- 
vice and  the  use  of  telephones  within  the  city,  and 
to  fix  and  determine  the  charges  for  telephones 


96  RATE    REGULATION. 

and  telephone-service  connections,  and  to  prohibit 
or  regulate  the  erection  of  telegraph,  telephone  or 
electric  wire  poles,  or  other  poles,  for  whatsoever 
purposes  desired  or  used  in  the  public  grounds, 
streets  or  alleys,  and  the  placing  of  wires  thereon, 
and  require  the  removal  from  the  public  grounds, 
streets  or  allej^s  of  any  or  all  such  poles,  and  re- 
quire the  removal  and  placing  under  ground  of  any 
or  all  telegraph,  telephone  or  electric  wires." 

Chapter  37,  Article  III.  South  Omaha  Charter. 
Sec.  8197.  Subways,  condemnation.  ''To  erect,  con- 
struct, purchase,  maintain  and  operate  subways, 
or  conduits,  water  works,  gas  works  and  electric 
light  plants,  or  necessary  parts  thereof  within  the 
corporate  limits  of  the  city;  and  they  shall  have 
power  to  fix,  charge  and  collect  a  rental  or  com- 
pensation for  the  use  of  subways  or  conduits,  and 
of  water,  gas  and  electric  lights  furnished  to  con- 
sumers, and  make  all  needful  rules  and  regulations 
concerning  the  use  of  such  subways,  conduits, 
water,  gas  or  electric  lights,  and  to  do  all  acts 
necessary  for  the  construction,  completion,  man- 
agement and  control  of  the  same,  including  the  ap- 
propriation of  private  property  for  the  use  in  the 
construction  and  operation  of  the  same,  compensa- 
tion for  such  appropriation  to  be  made  as  pro- 
vided by  this  act;  and  the  mayor  and  council  of 
such  city  shall  have  power  to  provide  by  ordi- 
nance, or  contract,  with  any  competent  party  for 


THE  STATUTES  OF  THE  VARIOUS  STATES.  97 

the  supptying  and  furnishing  of  water,  gas,  or 
electric  hght,  or  electric  power,  to  the  public  or 
private  consumers  within  such  city,  and  the  rates, 
terms  and  conditions  upon  which  the  same  may  and 
shall  be  supplied  and  furnished  during  the  period 
named  in  the  ordinance  or  contract  as  provided 
in  this  act." 

Electric  light  system — how  established. 

Sec.  8794.  ''Any  city  of  the  second  class  in  this 
state  shall  have  power,  and  is  hereby  authorized, 
to  establish  and  maintain  a  system  of  electric 
lights  for  such  city,  and  the  city  council  shall  have 
power  to  levy  a  tax,  not  exceeding  five  (5)  mills 
on  the  dollar  in  any  one  year  for  the  purpose  of 
establishing,  extending  and  maintaining  such  sys- 
tem of  electric  lights." 

Sec.  8797.  Light  Commissioners — Bond,  Salary 
and  Removal.  "  Where  any  city  shall  have  estab- 
lished an  electric  light  system  it  shall  provide  by 
ordinance  for  the  management  and  control  of  the 
same,  and  the  rates  to  be  charged  to  persons  using 
such  lights.  In  cities  having  and  maintaining  a 
system  of  water  works,  and  having  a  water  com- 
missioner, such  water  commissioner  shall  be  ex 
officio  light  commissioner.  In  cities  having  no 
water  commissioner,  the  mayor  shall,  with  the  ad- 
vice and  consent  of  the  city  council,  appoint  some 
resident  freeholder  of  such  city  as  light  commis- 
7 


98  RATE    REGULATION. 

sioner,  who  shall  hold  his  office  until  the  end  of  the 
municipal  year  and  until  his  successor  shall  be 
appointed  and  shall  have  qualified.  Before  enter- 
ing upon  the  duties  of  his  office  the  hght  commis- 
sioner so  appointed  shall  give  bond  to  the  city  in 
such  sum  as  may  be  required  by  the  city  council, 
conditional  for  the  faithful  performance  of  his 
duties,  and  signed  by  two  or  more  good  and  suffi- 
cient sureties,  resident  freeholders  of  such  city; 
and  shall  also  take  oath  to  faithfully  and  impartially 
discharge  the  duties  of  his  office.  Such  commis- 
sioner shall  have  general  management  and  control 
of  the  system  of  electric  light  in  such  city  under 
the  direction  of  the  city  council,  shall  collect  all 
monies  receivable  by  the  city  for  such  lights,  and 
shall  faithfully  account  for  all  monies  that  may 
come  into  his  hands  and  perform  such  other  duties 
as  may  be  required  of  him  by  ordinance.  He  shall 
make  a  detailed  report  to  the  city  council,  at  least 
every  six  months,  showmg  the  condition  of  such 
system,  and  of  all  such  improvements,  repairs, 
extensions  and  additional  machinery  which  he 
may  think  proper  to  make  or  obtain,  together  with 
an  estimate  of  the  cost  thereof.  He  shall  also  at 
the  same  time  make  a  detailed  report  of  all  ex- 
penses incurred  in  the  running  and  management 
of  such  system  of  lights  since  his  last  previous 
report.  He  shall  receive  a  salary  to  be  fixed  by 
the   city   council   by   ordinance,  and   may  be   re- 


THE  STATUTES  OF  THE  VARIOUS  STATES.  99 

moved  at  any  time  by  a  two-thirds'  vote  of  the 
council." 

Uses   of   lights — Rates,    how   fixed   and   collected. 

Sec.  8798.  ''The  city  council  shall  fix  by  ordi- 
nance the  rates  to  be  charged  for  the  use  of  its 
lights,  and  shall  provide  the  manner  of  collecting 
the  same.  The  commissioner  shall  make  duplicate 
receipts  for  all  monies  collected,  one  of  which  shall 
be  given  to  the  person  from  whom  the  money  is 
collected  and  the  other  shall  be  retained  in  his 
office  and  delivered  to  his  successor  in  office.  All 
money  collected  for  the  use  of  electric  lights  shall 
be  paid  over  to  the  city  treasurer,  and  kept  by  him 
in  a  separate  fund,  and  be  used  for  the  operation, 
maintenance,  repair  and  extension  of  such  system 
under  the  direction  of  the  city  council." 

NEVADA. 

Laws   of  Nevada,    1901. 

Chapter  XXV.  ''An  act  granting  to  persons  and 
corporations  the  right  to  supply  electric  power, 
heat  and  light  to  the  inhabitants  and  counties^ 
cities  and  counties,  cities  and  towns  of  the  state 
of  Nevada,  and  granting  to  such  persons  and  cor- 
porations the  right  to  erect  and  maintain  poles 
and  wires  on  the  county  roads  and  highways,  and 
in  the  streets  of  the  said  cities,  cities  and  counties, 
cities  and  towns  of  this  state,  and  to  conduct 
electricity  over  said  wires,  and  providing  for  the 


100  KATE    REGULATION. 

punishment  of  obstruction,  hindrance  or  damage 
thereto." 

Section  1.  ''The  right  is  hereby  granted  to  any 
person,  or  corporation  incorporated  under  the  laws 
of  this  state,  or  under  the  laws  of  any  other  state 
but  doing  business  in  this  state,  after  compliance 
with  the  laws  of  this  state  concerning  foreign  cor- 
porations, to  supply  electric  power,  heat  and  light 
to  the  inhabitants  of  the  counties,  cities  and 
counties,  cities  and  towns  of  this  state;  and  that 
to  carry  out  said  purpose  the  right  is  hereby  granted 
to  such  persons  or  corporations  to  erect  and  main- 
tain poles  and  wires  on  the  county  roads  and  high- 
ways, and  in  the  streets  of  said  cities,  cities  and 
counties,  cities  and  towns  of  this  state,  together 
with  all  the  necessary  appurtenances,  and  conduct 
electricity  over  said  wires  and  appurtenances,  and 
any  part  of  said  towns,  cities,  cities  and  counties, 
and  counties  for  the  purpose  of  furnishing  electric 
power,  heat  and  light;  provided,  that  said  poles 
shall  not  be  so  placed  upon  said  roads,  highways 
or  streets  as  to  impede  travel  thereon,  and  shall 
be  not  less  than  forty-five  feet  above  the  ground 
in  cities  and  towns,  but  shall  be  placed  as  nearty 
to  the  sides  of  said  roads,  highways  and  streets  as 
possible,  consistent  with  the  uses  of  the  poles. 

§2.  ''Such  persons  or  corporations  shall  keep 
their  plants,  poles,  wires  and  necessary  appurte- 
nances in  good  repair  so  as  not  to  interfere  with 


THE  STATUTES  OF  THE  VARIOUS  STATES.  101 

the  passage  of  persons  or  vehicles,  or  the  safety  of 
persons  or  property. 

§  3.  '^The  appurtenances  of  said  plants  shall  be 
of  the  most  approved  construction  for  the  comfort 
and  convenience  of  the  inhabitants  of  said  coun- 
ties, cities  and  counties,  cities  and  towns  of  this 
state. 

§  4.  '^Any  person  wilfully  obstructing,  hinder- 
ing or  damaging  said  plant,  poles,  wires  or  ap- 
purtenances shall  be  guilty  of  a  misdemeanor,  and 
shall  be  punished  according  to  the  laws  of  the  state 
of  Nevada  in  such  case  made  and  provided. 

§  5.  ''The  franchise  and  privilege  hereby  granted 
shall  continue  for  a  period  of  twentj^-five  years 
from  and  after  the  date  of  filing  a  notice  of  inten- 
tion on  behalf  of  such  persons  or  corporations  to 
supply  such  electric  power,  heat  and  light  to  said 
inhabitants,  in  the  office  of  the  county  recorder  of 
the  county  in  which  such  person  or  corporation 
intends  to  suppl}^  said  electric  power,  heat  and 
light,  accompanied  by  an  agreement  on  behalf  of 
such  person  or  corporation  that  he,  or  it,  will  aur 
nually  pay  to  such  count}^,  cit}^  and  county,  city 
or  town  two  per  cent  of  the  net  profits  made  in 
furnishing  said  electric  power,  heat  or  light;  pro- 
vided, that  such  person  or  corporation  shall  com- 
mence the  construction  of  their  plant,  or  pole  lines, 
or  necessary-  apphances  within  three  months  after 
filing  said  notice  of  intention  and  agreernent,  and 


102  RATE    REGULATION. 

continue  the  same  to  completion  with  reasonable 
diligence;  and  provided,  further,  that  an  affidavit 
sworn  to  by  such  person,  or  by  the  president  or 
secretary  of  such  corporation,  containing  a  full 
statement  as  to  the  receipts  and  expenditures  of 
said  person  or  corporation  in  the  furnishing  of  said 
electric  power,  heat  and  light,  for  the  twelve 
months  next  preceding,  be  annually  filed  in  the 
office  of  said  county  recorder." 

NEW   HAMPSHIRE. 

Public  Statutes  and  Session  Laws  of  New  Hamp- 
shire in  force  January  1,  1901.  Chapter  81.  Tele- 
graph, Telephone  and  Electric  Light  Companies. 

Sec.  13.  ''All  telegraph,  telephone  and  electric 
fight  companies  serving  parties  for  hire  shall  be 
deemed  to  be  public,  and  shaU  reasonably  accom- 
modate persons  wishing  to  enjoy  their  facilities 
without  discrimination  and  at  reasonable  rates." 
(Laws  of  1881,  54:12.) 

NEW  JERSEY. 

There  does  not  appear  to  be  any  law  bearing 
directly  upon  the  question  of  regulation  of  the 
rates  of  gas  and  electric  companies  in  this  state; 
such  regulations  seem  to  be  left  to  agreements  be- 
tween the  parties.     However,  for  purposes  of  ref- 


THE  STATUTES  OF  THE  VARIOUS  STATES.    103 

erence,  the  statutes  relating  to  gas  companies  and 
electric  companies  are  set  forth  below. 

General  Statutes  of  New  Jersey,  vol.  2,  p.  1610. 
Gas  companies,  Act  of  1876. 

Sec.  17.  "That  any  corporation  formed  under 
this  act  shall  have  full  power  to  manufacture  and 
sell,  and  furnish  such  quantities  of  illuminating 
gas  as  may  be  required  in  the  city,  town  or  village 
where  the  same  shall  be  located  for  lighting  the 
streets  and  public  and  private  buildings,  and  such 
corporation  shall  have  power  to  lay  conductors  for 
conducting  gas  through  the  streets,  lanes,  alleys  and 
squares  in  such  city  or  town,  having  first  obtained 
the  written  consent  of  the  municipal  authorities 
of  said  city,  village  or  town,  and  under  such  regu- 
lations as  they  may  prescribe." 

Page  2143.  An  act  authorizing  the  hghting  of 
public  streets  and  places  in  the  cities,  towns,  town- 
ships, boroughs  and  villages  of  the  state.  (Laws 
of  1886.) 

(107)  Section  1.  ''That  it  shall  hereafter  be  law- 
ful for  the  common  council,  township  committee, 
or  other  municipal  authorities  of  any  cit}^  town, 
township,  borough  or  village  in  the  said  state  from 
time  to  time,  and  by  ordinance  or  resolution,  to 
order  and  cause  any  public  street,  or  streets,  place 
or  places,  or  any  part  or  parts  thereof,  in  any  such 
city,  town,  township,  borough  or  village,  respec- 
tively, to  be  lighted  with  gas  or  otherwise,  and  for 


104  RATE    REGULATION. 

that  purpose  to  erect  and  maintain,  or  cause  to 
be  erected  and  maintained,  all  necessary  and  proper 
posts,  lanterns  and  fixtures  and  to  make  and  enter 
into  any  contract,  or  contracts,  with  any  other 
party  or  parties  in  relation  to  the  same;  and  to 
cause  the  annual  expense  thereof,  after  being  as- 
certained or  determined  by  a  resolution  of  said 
council,  committee  or  other  municipal  authorities 
to  be  certified  unto  the  assessor  or  assessors  of  said 
city,  town,  township,  borough  or  village;  and  that 
such  annual  expense  shall  thereupon  be  levied,  as- 
sessed and  collected  from  all  the  real  and  personal 
property  in  the  said  city,  town,  township,  borough 
or  village,  respectively,  in  the  same  manner  and  at 
the  same  time,  and  under  the  same  penalties  (but 
without  any  extra  compensation  therefor)  as  the 
taxes  for  the  working  or  repairing  of  roads  or  streets 
in  such  city,  town,  township,  borough  or  village, 
respectively,  are  or  may  be;  provided,  however, 
that  in  making  such  assessment  of  the  tax  hereby 
authorized  the  said  assessor  or  assessors  shall  not 
be  restricted  or  controlled  in  any  way  whatsoever 
by  any  special  or  other  act  of  the  legislature  here- 
tofore passed  whereb}^  the  amount  of  any  tax  to 
be  raised  in  any  city,  town,  township,  borough  or 
village  is  limited  to  a  certain  percentage  upon  the 
valuation  of  the  assessed  property  therein. 

(108)  Sec.  2.  ''That   any   act,    or  acts,    or   any 
part  or  parts  thereof,  inconsistent  with  the  pro- 


THE  STATUTES  OF  THE  VARIOUS  STATES.  105 

visions  of  this  act  is  and  are  hereby  repealed  in  so 
far  as  it,  or  they,  is  or  are  inconsistent  herewith, 
and  that  this  act  is  hereby  declared  to  be  a  pubhc 
act  and  shall  take  effect  immediately." 

Page  2173.  An  act  to  empower  the  town  and 
township  committees  in  counties  of  the  third  and 
second  class  to  enter  into  a  contract  for  public 
lighting  for  a  term  of  years.     (Laws  of  1894.) 

(239)  Sec.  1.  '^That  it  shall  be  lawful  for,  and 
the  town  or  township  committee  of  any  incorpo- 
rated town  or  township  in  any  county  of  the  third 
and  second  class  are  hereby  empowered  and  au- 
thorized to  make  and  enter  into  a  contract  or 
agreement  with  any  gas,  electric  light  or  other  com- 
pany for  one  year,  or  for  a  term  of  years,  for  ob- 
taining and  furnishing  lights,  and  lighting  either 
with  gas,  electricity  or  other  illuminating  l^ody, 
for  lighting  the  public  streets  or  public  buildings 
of  any  such  town  or  township;  and  any  such  con- 
tract or  agreement  when  so  made  shall  be  the  valid 
and  lawful  contract  of  any  such  township,  as  well 
as  of  any  such  gas,  electric  light  or  other  company 
according  to  the  tenor  and  effect  thereof;  and  the 
sum  or  sums  of  money  in  such  contract  agreed  to 
be  paid  in  each  year  by  any  such  town  or  town- 
ship, or  by  the  town  or  township  committee  thereof, 
shall  be  annually  appropriated,  levied,  assessed  and 
collected  as  a  tax  upon  the  real  and  personal  es- 
tates within  such  town  or  township,  and  subject 


106  RATE    REGULATION. 

to  taxation  for  other  municipal  purposes,  in  the 
same  manner  that  other  municipal  taxes  are  as- 
sessed and  collected ;  and  the  said  real  and  personal 
estate  are  hereby  made  liable  to  and  for  the  assess- 
ment and  collection  of  such  tax;  provided,  how- 
ever, and  it  is  hereby  expressly  enacted,  that  no 
such  agreement  or  contract  shall  be  made  for  a 
longer  period  than  three  years  in  any  one  term." 

(240)  Sec.  2.  ''That  it  shall  be  lawful  for,  and 
the  town  or  township  committee  in  such  town  or 
township  are  hereby  authorized  and  empowered 
to  use  any  and  all  such  sum  or  sums  of  money,  for 
carrying  into  effect  the  purposes  of  this  act  here- 
tofore or  hereafter  appropriated  by  the  legal  voters 
of  such  town  or  township  at  any  annual  town  meet- 
ing for  said  public  lighting." 

(241)  Sec.  3.  ''That  all  acts  and  parts  of  acts, 
public,  special  or  local,  inconsistent  herewith  be 
and  the  same  are  hereby  repealed,  and  this  act  shall 
be  a  public  act  and  take  effect  immediately." 

Page  2174.  An  act  authorizing  the  lighting  of 
public  streets  and  places  in  the  cities,  towns,  town- 
ships, boroughs  and  villages  of  the  state,  and  to 
erect  and  maintain  the  proper  appliances.  (Laws 
of  1894.) 

(242)  Sec.  1.  "That  it  shall  hereafter  be  lawful 
for  the  common  council,  township  committee  or 
other  municipal  authorities  of  any  city,  town, 
township,  borough  or  village  in  this  state,  author- 


THE  STATUTES  OF  THE  VAKIOUS  STATES.  107 

ized  to  act  in  such  matters,  from  time  to  time  and 
by  ordinance  or  resolution  to  order  and  cause  any 
public  street,  or  streets,  place  or  places,  or  any  part 
or  parts  thereof,  of  any  such  city,  town,  township, 
borough  or  village,  respectively,  to  be  lighted  with 
gas,  electric  light  or  otherwise,  and  for  that  pur- 
pose to  erect  and  maintain,  or  cause  to  be  erected 
and  maintained,  all  necessary  and  proper  posts, 
poles,  lanterns  and  fixtures  on  any  or  all  of  the  pub- 
lic roads,  streets,  alleys  or  lanes,  and  to  make  and 
enter  into  any  contract  or  contracts  with  any  other 
party  or  parties  for  any  term  or  terms,  not  exceed- 
ing five  years;  and  to  cause  the  annual  expense 
thereof,  after  being  ascertained  or  determined  by 
resolution  of  said  council  committee  or  other  mu- 
nicipal authorities,  to  be  certified  to  the  assessor 
or  assessors  of  said  city,  town,  township,  borough 
or  village;  and  that  such  annual  expense  shall 
thereupon  be  levied,  assessed  and  collected  from 
all  the  real  and  personal  property  in  said  city,  town, 
township,  borough  or  village,  respectively,  in  the 
same  manner,  at  the  same  time  and  under  the  same 
penalties  (but  without  any  extra  compensation 
therefor)  as  the  tax  for  the  working  or  repairing 
of  roads  or  streets  in  such  cit}^  town,  township, 
borough  or  village,  respective^,  are  or  may  be; 
provided,  however,  that  in  making  such  assessment 
of  the  tax  hereby  authorized  the  said  assessor  or 
assessors  shall  not  be  restricted  or  controlled  in 


108  RATE    HEGULATION. 

any  way  by  any  special  act  of  the  legislature  here- 
tofore passed  whereby  the  amount  of  any  tax  to 
be  raised  in  any  cit}",  town,  township,  borough  or 
village  is  limited  to  a  certain  percentage  upon  the 
valuation  of  the  assessed  propert}'^  therein. 

(243)  Sec.  2.  ^'That  any  act,  or  acts,  or  part 
or  parts  thereof,  inconsistent  with  the  provisions 
of  this  act  is  and  are  hereby  repealed  in  so  far  as 
it,  or  they,  is  or  are  inconsistent  herewith,  and  that 
this  act  is  hereby  declared  to  be  a  public  act  and 
shall  take  effect  immediately." 

NEW   YORK. 

Laws  of  1905,  ch.  737. 
^' AN  ACT  to  establish  a  commission  of  gas  and  elec- 
tricity with  power  to  regulate  the  price  of  gas 
and  electric  light  and  certain  other  electric  ser- 
vices, and  to  provide  for  the  control  and  super- 
vision of  gas,  electric  light  and  other  electric 
corporations  and  making  an  appropriation  there- 
for." 

Became  a  law,  June  3,  1905,  with  the  approval 
of  the  Governor.     Passed,  three-fifths  being  present. 

"The  People  of  the  State  of  New  York,  represented 
in  Senate  and  Assembly,  do  enact  as  follows: 

''Section  1.  Commission  of  gas  and  electricity  es- 
tablished.— The  commission  of  gas  and  electricity 
is  hereby  established  and  shall  possess  the  powers 


THE  STATUTES  OF  THE  VARIOUS  STATES.  109 

and  perform  the  duties  hereinafter  specified. 

''§2.  De-finitions;  application  of  act. — The  word 
'commission'  when  used  in  this  act  means  the 
commission  of  gas  and  electricity.  The  w^ord  'cor- 
poration' includes  a  compan}^,  association  and 
joint-stock  association.  The  word  ' municipahty ' 
includes  a  city,  village,  town  or  lighting  district 
organized  as  provided  by  a  general  or  special  act. 
The  word  'person'  includes  an  individual,  firm  or 
copartnership.  This  act  shall  not  apply  to  rail- 
road, telegraph  or  telephone  corporations. 

"§3.  Appointment;  terms  of  office;  vacancies. — 
The  commission  of  gas  and  electricity  shall  consist 
of  three  commissioners  to  be  appointed  by  the 
governor,  by  and  with  the  advice  and  consent  of 
the  senate,  one  of  whom  shall  l^e  designated  l^y  the 
governor  as  chairman.  Of  the  commissioners  first 
appointed  hereunder,  one  shall  be  appointed  for  a 
term  of  two  years,  one  for  a  term  of  four  years,  and 
one  for  a  term  of  six  years,  from  the  first  day  of 
June,  nineteen  hundred  and  five.  Upon  the  ex- 
piration of  such  terms,  the  term  of  office  of  com- 
missioners thereafter  appointed  shall  be  six  years 
beginning  on  the  first  day  of  June  in  the  year  in 
which  they  are  appointed.  I^ach  commissioner  ap- 
pointed hereunder  shall  hold  office  until  his  suc- 
cessor shall  have  been  appointed,  and  shall  have 
qualified.  If  a  vacancy  shall  occur  in  any  such 
office,  otherwise  than  by  expiration  of  term,  the 


110  RATE    REGULATION. 

governor  shall  appoint  a  commissioner  to  fill  such 
vacancy  for  the  unexpired  term. 

''§4.  Oath  of  office;  eligibility  of  commissioners 
and  officers  of  commission. — Each  commissioner  and 
each  person  appointed  to  office  by  the  commission 
shall,  before  entering  upon  the  duties  of  his  office, 
take  and  subscribe  the  constitutional  oath  of  office. 
No  person  shall  be  eligible  to  appointment  or  shall 
hold  the  office  of  commissioner,  or  be  appointed  by 
the  commission  to,  or  hold  any  office  or  position 
under  the  commission,  who  holds  any  official  rela- 
tion to  any  gas  or  electric  light  or  power  corpora- 
tion, or  who  owns  stock  or  bonds  therein. 

*^§  5.  Officers  and  meetings  of  commission;  official 
seal;  stationerrj. — The  principal  office  of  the  com- 
mission shall  be  in  the  city  of  Albany,  in  rooms 
designated  by  the  trustees  of  public  buildings,  and 
it  may  have  a  branch  office  in  the  city  of  New  York, 
and  one  in  the  city  of  Buffalo.  The  commission 
shall  meet  at  least  once  a  month  during  the  year 
at  its  office  in  Albany.  The  commission  shall  have 
an  official  seal,  to  be  prepared  by  the  secretary  of 
state  as  provided  by  law,  and  its  offices  shall  be 
supplied  with  necessary  postage,  stationery,  office 
furniture  and  appliances,  to  be  paid  for  as  other 
expenses  authorized  by  this  act,  and  it  shall  have 
prepared  for  it  by  the  state  the  necessary  books, 
maps  and  statistics,  incidentally  necessary  for  the 
discharge  of  its  duties. 


THE  STATUTES  OF  THE  VARIOUS  STATES.  IJi 

''  §  6.  Quorum  of  commission;  powers  of  single  com- 
missioner.— Two  of  the  commissioners  shall  con- 
stitute a  quorum  for  the  transaction  of  any  busi- 
ness or  the  performance  of  any  duty  of  the  com- 
mission and  may  hold  meetings  thereof  at  any 
time  or  place  within  the  state.  All  examinations 
or  investigations  made  by  the  commission  may  be 
held  and  taken  by  and  before  any  one  of  the  com- 
missioners, and  the  proceedings  and  decisions  of 
such  single  commissioner,  shall  be  deemed  to  be 
the  proceedings  and  decisions  of  the  commission, 
when  approved  and  confirmed  by  it. 

"  §  7.  Officers,  clerks,  inspectors  and  employees. — 
The  commission  may  appoint  such  officers,  clerks, 
inspectors,  experts  and  employees  as  may  be  re- 
quired to  carry  out  the  provisions  of  this  act,  sub- 
ject to  the  provisions  of  the  civil  service  law,  and 
may  prescribe  their  duties. 

"§  8.  Salaries  and  expenses. — The  annual  salary 
of  each  commissioner  shall  be  eight  thousand  dol- 
lars. The  officers,  clerks,  inspectors,  experts  and 
other  employees  of  the  commission  shall  receive 
the  compensation  fixed  by  the  commission.  In 
the  discharge  of  their  official  duties  the  commis- 
sioners shall  have  reimbursed  to  them  the  neces- 
sary traveling  expenses  and  disbursements  of  them- 
selves, their  officers,  clerks,  inspectors,  experts  and 
other  employees,  not  exceeding  in  the  aggregate 
the  sum  of  five  hundred  dollars  per  month.     All 


112  RATE    REGULATION. 

salaries  and  disbursements  shall  be  audited  and 
allowed  by  the  comptroller  and  paid  monthly  by 
the  state  treasurer  upon  the  warrant  of  the  comp- 
troller. 

*'§9.  General  powers  of  commission. — Such  com- 
mission shall: 

"1.  Have  the  general  supervision  of  all  persons 
and  corporations  having  authority  under  any  gen- 
eral or  special  law  to  lay  down  or  erect  and  main- 
tain wires,  pipes,  and  other  fixtures  in,  over  or 
under  the  streets,  highways  and  public  places  of 
any  municipality  in  this  state,  for  the  purpose  of 
furnishing  gas  or  of  furnishing  or  transmitting 
electricity  for  light,  heat  or  power. 

''2.  Investigate  and  ascertain,  from  time  to  time, 
the  quality  of  gas  supplied  by  persons,  corpora- 
tions or  municipalities;  examine  the  methods  em- 
ployed by  such  persons,  corporations  or  munici- 
palities in  supplying  gas  and  electricity  for  light, 
heat  and  power  or  in  transmitting  the  same,  and 
order  such  improvements  as  will  best  promote 
public  interests,  preserve  the  public  health  and 
protect  those  using  such  gas  or  electricity,  and 
those  employed  in  the  manufacture  and  distribu- 
tion thereof,  or  in  the  maintenance  or  operation 
of  the  works,  wires,  poles,  lines  and  systems  con- 
nected therewith. 

'^3.  Fix  the  standard  of  illuminating  power  and 
purity  of  gas  manufactured  and  sold  by  persons, 


THE  STATUTES  OF  THE  VARIOUS  STATES.    113 

corporations  and  municipalities  for  lighting  pur- 
poses, not  less  than  that  prescribed  by  law,  and 
require  the  gas  so  manufactured  and  sold  to  equal 
the  standard  estabUshed  by  law  or  by  it,  and  es- 
tablish a  standard  of  pressure  at  which  gas  shall 
be  delivered,  where  such  standard  is  not  otherwise 
prescribed  by  law. 

"4.  Have  power,  in  its  discretion,  to  prescribe 
methods  of  keeping  accounts  and  books,  to  be  ob- 
served by  the  persons,  corporations  and  munici- 
palities engaged  in  the  manufacture,  sale  and  dis- 
tribution of  gas  and  electricity  for  light,  heat  or 
power. 

''5.  Examine  all  persons,  corporations  and  mu- 
nicipalities under  its  supervision,  keep  informed 
as  to  the  methods  employed  by  them  in  the  trans- 
action of  their  business,  and  see  that  their  property 
is  maintained  and  operated  for  the  security  and 
accommodation  of  the  public  and  in  compliance 
with  the  provisions  of  law  and  of  their  franchises 
and  charters. 

''6.  Require  each  corporation  under  its  super- 
vision to  submit  to  it  an  annual  report,  verified 
by  the  oath  of  the  president,  treasurer  or  general 
manager  thereof,  showing  in  detail  (1)  the  amount 
of  its  authorized  capital  stock,  the  amount  issued 
and  outstanding;  (2)  the  amount  of  its  authorized 
bonded  indebtedness  and  the  amount  of  its  bonds 
issued  and  outstanding;  (3)  its  receipts  and  ex- 
8 


114  RATE    REGULATION. 

penditures  during  the  preceding  year;  (4)  the 
amount  paid  as  dividends  upon  its  stock  and  as 
interest  upon  its  bonds;  (5)  the  amount  paid  as 
salaries  to  its  officers  and  as  wages  to  its  emplo3^ees ; 

(6)  the  location  of  its  plant  and  system,  with  a  full 
description    of   its   property    and   franchises;   and 

(7)  such  other  facts  pertaining  to  the  operation 
and  maintenance  of  the  plant  and  system,  and  the 
affairs  of  such  corporation  as  ma}^  be  required  by 
the  commission.  Such  reports  shall  be  in  the 
form,  cover  the  period,  and  be  submitted  at  the 
time  prescribed  by  the  commission. 

''7.  Make  to  the  legislature  an  annual  report  con- 
taining the  result  (1)  of  examinations  or  investiga- 
tions conducted  by  it,  abstracts  of  reports  of  cor- 
porations made  to  it;  (2)  recommendations  as  to 
modifications  of  the  laws  pertaining  to  the  affairs 
of  corporations  subject  to  its  supervision;  (3)  such 
facts  and  explanations  as  will  disclose  the  methods 
employed  in  the  manufacture,  sale  and  distribu- 
tion of  gas  and  electricity  for  light,  heat  and  power; 
(4)  suggestions  as  to  the  better  protection  of  public 
interests  and  health  in  the  transaction  of  business 
by  such  corporations ;  and  (5)  a  record  of  the  meet- 
ings and  an  abstract  of  the  proceedings  of  the 
commission  during  the  preceding  year. 

^^8.  Have  power,  either  through  its  members  or 
inspectors  or  employees  dul}^  authorized  by  it,  to 
enter  in  or  upon  the  propert}',  buildings,  plants. 


THE  STATUTES  OF  THE  VARIOUS  STATES.  115 

factories,  power  houses  and  offices  of  any  of  such 
corporations,  persons  or  municipahties  while  the 
same  are  open  for  the  purpose  of  operation  or  while 
the  business  of  such  corporation  is  being  done 
therein. 

"9.  Have  power  to  examine  the  books  and  affairs 
of  any  such  corporations,  persons  or  municipalities, 
and  to  compel  the  production  before  it  of  books 
and  papers  pertaining  to  the  affairs  being  investi- 
gated by  it. 

''10.  Have  power  to  subpana  witnesses,  take 
testimony  and  administer  oaths  to  witnesses  in 
any  proceeding  or  examination  instituted  before 
it,  or  conducted  by  it  under  the  provisions  of  this 
act. 

"11.  Have  power  to  adopt  rules  governing  prac- 
tice in  proceedings  brought  by  or  before  it  not 
inconsistent  with  law. 

"  §  10.  Inspection  of  gas  and  electric  meters. — Such 
commission  shall  have  full  power,  control  and 
supervision  of  the  inspection  of  gas  and  electric 
meters  by  any  state  or  municipal  officer  appointed, 
for  such  purpose,  and  may  adopt  and  enforce  rules 
and  regulations,  not  inconsistent  with  law,  pre- 
scribing the  manner,  methods  and  conditions  of 
testing  such  meters.  It  shall  see  that  the  state 
inspector  of  gas  meters,  and  the  inspectors  ap- 
pointed by  him,  and  municipal  inspectors  of  gas 
and  electric  meters,  faithfully  perform  the  duties 


116  RATE    REGULATION. 

imposed  upon  them  b}'  law,  and  by  the  rules  and 
regulations  of  the  commission,  and  shall  report  any 
failure  of  such  performance  or  any  violation  of  law 
or  of  such  rules  and  regulations  to  the  officer  or 
board  appointing  such  inspectors,  and  such  failure 
or  violation  shall  be  a  sufficient  cause  for  their 
removal.  The  commission  may  provide  for  the 
inspection  of  electric  meters,  and  may  appoint  an 
inspector  for  such  purpose  who  shall  perform  the 
duties  required  of  him  by  the  commission. 

''§  11.  Approval  of  incorporation  and  franchises; 
certificate. — A  corporation  hereafter  incorporated 
under  the  laws  of  this  or  any  other  state  for  manu- 
facturing and  supplying  gas  for  lighting  the  streets, 
highways  and  public  places,  and  for  heating  and 
hghting  public  or  private  buildings,  or  for  manu- 
facturing, using,  transmitting  and  supplying  elec- 
tricity for  producing  hght,  heat  or  power  for  public 
or  private  buildings  or  for  lighting  streets,  high- 
ways and  public  places,  shall  not  exercise  any  of 
its  powers,  or  transact  any  business  within  this 
state,  until  it  shall  have  secured  a  certificate  of  au- 
thority therefor  signed  and  executed  by  the  com- 
mission under  its  official  seal.  Before  such  certifi- 
cate shall  be  issued  a  certified  copy  of  the  charter 
of  such  corporation  shall  be  filed  in  the  office  of  the 
commission,  together  with  a  verified  statement  of 
the  president  and  secretary  of  the  corporation, 
showing  that  it  has  received  the  required  consent 


THE  STATUTES  OF  THE  VARIOUS  STATES.  117 

of  the  proper  municipal  authorities.  The  com- 
mission may  inquire  as  to  the  necessity  of  the 
service  to  be  furnished  by  such  corporation,  and 
as  to  the  intentions  and  good  faith  of  the  corpora- 
tion and  its  officers,  and  if  satisfied  that  the  terri- 
tory within  which  such  corporation  proposes  to 
operate  is  already  supplied  by  an  ample  and  well 
constructed  system,  furnishing  the  service  which 
such  corporation  proposes  to  furnish,  at  a  fair  and 
reasonable  rate,  such  commission  may  refuse  to 
grant  its  certificate  of  authority.  No  municipality 
shall  build,  maintain  and  operate  for  other  than 
municipal  purposes  any  works  or  systems  for  the 
manufacture  and  supplying  of  gas  or  electricity 
for  lighting  purposes  without  a  certificate  of  au- 
thority granted  by  the  commission.  If  the  cer- 
tificate of  authority  is  refused,  no  further  proceed- 
ings shall  be  taken  before  the  commission,  but  a 
new  application  may  be  made  therefor  after  one 
year  from  the  date  of  such  refusal. 

''§  12.  Aijproval  of  issue  of  stock  and  bonds. — • 
Stock  or  bonds  shall  not  be  issued  by  any  corpo- 
ration hereafter  incorporated  which  is  subject  to 
the  supervision  of  the  commission,  until  the  cer- 
tificate of  authority  has  been  issued  as  required 
in  the  preceding  section,  and  until  such  commis- 
sion shall  further  certify,  in  writings  as  to  the 
amount  of  stock  or  bonds  reasonably  required  for 
the  purposes  of  the  corporation.     Stock  and  bonds 


118  RATE    REGULATION. 

of  such  corporation  shall  not  be  issued  in  excess 
of  the  amount  so  certified.  Any  such  corporation 
heretofore  or  hereafter  incorporated  shall  not  in- 
crease its  capital  stock  or  its  bonded  indebtedness 
without  the  consent  in  writing  of  such  commis- 
sion, stating  the  amount  of  the  authorized  increase. 
For  the  purpose  of  making  its  determination  as 
to  the  amount  of  stock  and  bonds  to  be  issued 
or  the  amount  of  the  authorized  increase  of  the 
capital  stock  and  bonded  indebtedness  of  any 
such  corporation,  the  commission  ma}'  take  and 
hear  testimony,  and  examine  the  books  and  pa- 
pers of  the  corporation,  and  require  verified  state- 
ments from  the  officers  thereof,  pertaining  to  the 
value  of  the  propert}'  and  franchises  owned  and 
operated  by  such  corporation.  Such  determina- 
tion shall  be  made  within  thirty  days  after  the 
final  submission  of  the  papers  or  a  final  hearing 
on  the  application. 

''§  13.  Approval  of  transfer  of  franchise. — A  cor- 
poration subject  to  the  general  supervision  of  the 
commission  shall  not  transfer  or  lease  its  fran- 
chise, works,  system  or  property  or  any  part  of 
such  franchise,  works,  s^^stem  or  property  to  any 
other  person  or  corporation  or  contract  for  the 
operation  of  its  works,  system  and  property  with- 
out the  written  consent  of  the  commission.  No 
such  corporation  shall  directly  or  indirectly  ac- 
quire the  stock  or  bonds  of  any  other  corporation 


THE  STATUTES  OF  THE  VARIOUS  STATES.  119 

incorporated  for  or  engaged  in,  the  same  or  a 
similar  business,  or  proposing  to  operate  or  operat- 
ing under  a  franchise  from  the  same  or  any  other 
municipality,  unless  authorized  so  to  do  by  the 
commission. 

''  §  14.  Appeals  to  appellate  division. — If  the  com- 
mission shall  refuse  any  certificate,  authority  or 
consent  required  under  the  provisions  of  either  of 
the  three  preceding  sections,  the  commission  shall, 
if  requested  by  the  applicant  for  such  certificate, 
authority  or  consent,  furnish  a  certified  copy  of 
all  papers  before  it  pertaining  to  the  application, 
and  of  its  findings  thereon,  and  such  applicant  may, 
within  sixty  days  after  notice  of  such  refusal, 
present  such  papers  and  findings  for  review  to  the 
appellate  division  of  the  supreme  court  of  the  third 
department,  and  such  appellate  division  may  order 
the  commission  to  issue  the  certificate  or  grant  the 
authority  or  consent  applied  for.  Upon  such  re- 
view the  commission  shall  be  represented  by  the 
attorney  general. 

''§  15.  Complaints  as  to  quality  and  price  of  gas 
and  electricity. — Upon  the  complaint  in  writing  of 
the  mayor  of  a  city,  the  trustees  of  a  village  or  the 
town  board  of  a  town  in  which  a  person  or  corpora- 
tion is  authorized  to  manufacture,  sell  or  supply 
gas  or  electricity  for  heat,  light  or  power,  or  upon 
the  complaint  in  writing  of  not  less  than  one  hun- 
dred customers,  or  purchasers  of  such  gas  or  elec- 


120  RATE    REGULATION. 

tricity,  either  as  to  illuminating  power,  purity, 
pressure  or  price  of  such  gas  or  electricity  sold  and 
delivered  in  such  municipality,  the  commission 
shall  investigate  as  to  cause  for  such  complaint, 
and  may,  by  its  agents  and  inspectors,  inspect  the 
works,  system,  plant  and  methods  used  by  such 
person  or  corporation  in  manufacturing,  trans- 
mitting and  supplying  such  gas  or  electricity  and 
examine  or  cause  to  be  examined  the  books  and 
papers  of  such  person  or  corporation  pertaining 
to  the  manufacture,  sale,  transmitting  and  supply- 
ing of  such  gas  or  electricity. 

''§  16.  Foi^ms  of  complaint;  signatures. — The  form 
and  contents  of  complaints  made  as  provided  in 
the  preceding  section  shall  be  prescribed  by  the 
commission.  Such  complaints  shall  be  signed  by 
the  officers  or  by  the  customers,  purchasers  or  sub- 
scribers making  them,  who  must  add  to  their  signa- 
tures their  places  of  residence,  by  street  and  num- 
ber, if  any. 

"^  17.  Notice  and  hearing;  fixing  price  of  gas  or 
electricity;  orders  requiring  improvement. — Before 
proceeding  under  a  complaint  presented  as  pro- 
vided in  section  fifteen,  the  commission  shall  cause 
notice  of  the  complaint,  and  the  purpose  thereof, 
to  be  served  upon  the  person  or  corporation  af- 
fected thereby.  A  pubhc  hearing  shall  be  had 
upon  such  complaint  at  which  the  complainants 
and  the  person  or  corporation  complained  of  shall 


THE  STATUTES  OF  THE  VARIOUS  STATES.  121 

have  an  opportunity  to  be  heard,  and  may  be 
represented  by  counsel.  After  such  hearing  and 
upon  such  investigation  as  may  have  ]3een  made 
by  the  commission  or  its  officers,  agents  or  in- 
spectors, the  commission,  within  the  Hmits  pre- 
scribed by  law,  may  fix  the  maximum  price  of  gas 
or  electricity  which  shall  be  charged  by  such  cor- 
poration or  person  in  such  municipality,  or  may 
order  such  improvement  in  the  manufacture  or 
supply  of  such  gas  or  in  the  manufacture,  trans- 
mission or  supply  of  such  electricity,  or  in  the 
methods  employed  by  such  person  or  corporation, 
as  will  in  its  judgment  improve  the  service.  The 
price  so  fixed  by  the  commission  shall  be  the  maxi- 
mum price  to  be  charged  by  such  person  or  corpo- 
ration for  gas  or  electricity  in  such  municipahty 
for  a  term  of  three  years  and  until,  after  the  ex- 
piration of  such  term  such  commission  shall  upon 
complaint  as  provided  in  this  section  again  fix  the 
price  of  such  gas  or  electricity. 

"§  18.  All  orders  made  by  the  commission  upon 
its  own  motion  or  without  complaint,  as  above 
provided,  shall  be  made  after  reasonable  notice 
to  the  person  or  corporation  affected  thereby,  and 
after  reasonable  opportunity  to  such  person  or 
corporation  to  present  his,  their  or  its  defence  or 
objections  to  the  demands  of  the  commission. 

''§  19.  The  complainant,  or  any  person  or  corpo- 
ration aggrieved  by  any  order  made  by  the  com- 


122  HATE    REGULATION. 

mission  whether  upon  complaint  or  otherwise, 
may,  within  thirty  days  after  notice  of  the  making 
of  such  order,  appeal  to  the  appellate  division  of 
the  supreme  court  of  any  department  within  which 
the  property  of  the  person  or  corporation  affected 
by  said  order  is  situated,  except  as  otherwise  here- 
inbefore provided,  in  whole  or  in  part.  Such  court 
may  affirm,  reverse  in  whole  or  in  part  or  modify 
the  order  appealed  from,  or  may  make  such  order 
in  the  premises  in  its  discretion  as  it  may  deem 
just  and  proper.  On  all  such  appeals  the  commis- 
sion shall  be  represented  by  the  attorney -general. 

''§  20.  An  order  made  by  the  commission,  as  in 
this  act  provided,  or  in  case  of  an  appeal  from  an 
order,  the  order  as  affirmed  or  modified  or  the  order 
made  on  such  appeal  may  be  enforced  by  writ  of 
mandamus.  The  commission  or  any  person,  cor- 
poration or  municipality  interested  in  the  enforce- 
ment of  such  order  may  apply  to  the  supreme  court 
at  a  special  term  thereof  for  a  writ  of  mandamus  to 
compel  compliance  with  such  order,  upon  proof  that 
the  said  order  has  been  duh^  made,  as  in  this  act 
provided,  and  has  not  been  complied  with,  after 
notice  of  the  making  thereof,  to  the  person  or 
corporation  affected  thereby,  the  supreme  court 
may  issue  a  writ  of  mandamus  to  enforce  the  pro- 
visions of  said  order. 

"^  21.  Defence  in  cases  of  excessive  charges. — If  it 
be  alleged  and  established  in  an  action  brought  in 


THE  STATUTES  OF  THE  VARIOUS  STATES.  123 

any  court  for  the  collection  of  any  charge  for  gas 
or  electricity,  that  a  price  has  been  demanded  in 
excess  of  that  fixed  by  the  commission  or  by  stat- 
ute in  the  municipality  wherein  the  action  arose,  no 
recovery  shall  be  had  therein,  but  the  fact  that  such 
excessive  charges  have  been  made  shall  be  a  com- 
plete defence  to  such  action. 

''  §  22.  There  shall  be  appropriated  for  the  use  of 
the  commission  and  for  the  payment  of  salaries 
and  disbursements  under  this  act,  from  money  not 
otherwise  appropriated  the  sum  of  sixty  thousand 
dollars. 

''§23.  This  act  shall  take  effect  immediately." 

OHIO. 

Bates'  Annotated  Ohio  Statutes,  vol.  1,  Fourth 
Edition,  1904.  Chapter  7,  Gas  &  Electric  Co.'s 
Plants.  Sec.  2478,  R.  S.  Regulating  the  Price  of 
Electric  Light,  Artificial  and  Natural  Gas. 

1536-1567.  "The  council  of  any  city  or  village  in 
which  electric  light  companies,  natural  or  artificial 
gas  companies,  or  gas  light  or  coke  companies  may 
be  established,  or  into  which  their  wires,  mains  or 
pipes  may  l^e  conducted,  are  hereby  empowered  to 
regulate  from  time  to  time  the  price  which  said 
electric  light,  natural  or  artificial  gas,  or  gas  and 
coke  companies  may  charge  for  electric  fight,  or 
for  gas  for  hght  or  fuel  purposes  furnished  ]:>y  such 
companies    to    the    citizens,    public    grounds    and 


124  RATE    REGULATION. 

places,  streets,  lanes,  alleys,  avenues,  wharfs  and 
landing  places;  and  such  electric  light,  and  natural 
or  artificial  gas,  or  gas  light  and  coke  companies 
shall  in  no  event  charge  more  for  any  electric  light, 
or  natural  or  artificial  gas  furnished  to  such  cor- 
poration or  individuals  than  the  price  specified  by 
ordinance  of  such  council,  and  such  council  shall 
also  have  power  to  regulate  and  fix  the  price  which 
such  companies  shall  charge  for  rent  of  their 
meters." 

1536-1568,  R.  S.  sec.  2479.  Maximum  not  to  he 
reduced  during  the  term  agreed  upon.  ^'In  case  the 
council  fixes  the  maximum  price  at  which  it  re- 
quires any  company  to  furnish  gas  to  the  citizens 
or  public  buildings,  or  for  the  purpose  of  lighting 
the  streets,  alleys,  avenues,  wharfs,  landing  places 
and  public  grounds  for  a  period  not  exceeding  ten 
years,  and  the  compan}^  assents  thereto  by  written 
acceptance  filed  in  the  office  of  the  clerk  of  the 
corporation,  it  shall  not  be  lawful  for  the  council 
to  require  such  company  to  furnish  gas  at  a  less 
price  during  the  period  of  time  agreed  on,  not 
exceeding  ten  years  as  aforesaid." 

R.  S.  sec.  2486.  Council  may  erect,  or  purchase 
gas  or  electric  works. 

1536-1576.  ''The  council  of  any  city  or  village 
shall  have  power  whenever  it  may  be  deemed  ex- 
pedient, and  for  the  public  good,  to  erect  gas  works 
or  electric  works  at  the  expense  of  the  corporation, 


THE  STATUTES  OF  THE  VARIOUS  STATES.    125 

or  to  purchase  any  gas  or  electric  works  already 
erected  therein;  provided,  that  in  villages  where 
gas  works  or  electric  works  have  already  been 
erected  by  any  person,  company  of  persons,  or 
corporation,  to  whom  a  franchise  to  erect  and  oper- 
ate gas  works  or  electric  works  has  been  granted, 
and  such  franchise  has  not  yet  expired,  the  council 
shall,  with  the  consent  of  the  owner  or  owners,  pur- 
chase such  gas  works  or  electric  works  already 
erected  therein;  and  in  the  event  the  council  and 
owner  or  owners  of  any  such  gas  or  electric  works 
shall  be  unable  to  agree  upon  the  compensation 
to  be  paid  for  such  gas  works  or  electric  works, 
the  council  may  file  in  the  Probate  Court  of  the 
county  where  such  gas  or  electric  works  are  located 
a  petition  to  appropriate  such  gas  works  or  elec- 
tric works,  and  thereupon  the  same  proceedings 
of  appropriation  shall  be  had  as  is  provided  for 
the  appropriation  of  private  property  by  munici- 
pal corporations;  provided,  that  any  municipal  con- 
tract existing  between  any  village  and  such  per- 
son, company  of  persons  or  corporation  for  the 
public  or  street  lighting  shall  be  considered  as  an 
element  of  value  in  fixing  the  compensation  to  be 
paid  for  such  gas  works  or  electric  works." 

R.  S.  sec.  2491.  Contract  to  supply  municipality 
with  electric  light  or  gas. 

1536-1581.  "A  municipal  corporation  may  con- 
tract with  such  company  for  supplying  to  them 


126  RATE    KEGULATION. 

electric  light,  natural  or  artificial  gas,  for  the  pur- 
pose of  lighting  (or  heating)  the  streets,  squares 
and  other  public  places  and  buildings  in  the  cor- 
poration limits;  but  this  section  shall  be  subject  to 
the  restriction  in  the  last  clause  of  sec.  3551." 

Laws  of  Ohio,  1904,  House  Bill  129. 

Sec.  2479.  "In  case  the  council  fixes  the  price  at 
which  it  shall  require  any  company  to  furnish  elec- 
tricity, or  either  natural  or  artificial  gas,  to  the 
citizens  or  public  ]3uildings,  or  for  the  purpose  of 
lighting  the  streets,  alleys,  avenues,  wharfs,  landing 
places,  public  grounds,  or  other  places,  or  for  other 
purposes,  for  a  period  not  exceeding  ten  years,  and 
the  compan}^  or  person  so  to  furnish  such  elec- 
tricity or  gas  shall  assent  thereto  b}^  written  ac- 
ceptance filed  in  the  office  of  the  clerk  of  the  corpo- 
ration, it  shall  not  be  lawful  for  the  council  to 
require  such  company  to  furnish  electricity,  or 
either  natural  or  artificial  gas,  as  the  case  may  be, 
at  a  less  price  during  the  period  of  time  agreed  on, 
not  exceeding  ten  years  as  aforesaid;  and  every 
ordinance  or  resolution  heretofore  passed  by  any 
municipal  corporation,  fixing  a  maximum  price  for 
furnishing  electricity,  or  either  natural  or  artificial 
gas  as  aforesaid,  which  has  been  assented  to  by  any 
company  or  person  by  written  acceptance  filed  in 
the  office  of  the  clerk  of  the  corporation,  shall  be  as 
valid,  and  said  price  shall  be  as  binding  as  if  this 
act  had  been  in  force  when  any  such  price  was  in 


THE  STATUTES  OF  THE  VARIOUS  STATES.         127 

terms  so  fixed  and  accepted.  Sec.  2.  That  said 
section  2479  be,  and  the  same  is  hereby  repealed; 
and  that  this  act  shall  take  effect  and  be  in  force 
from  and  after  its  passage." 

RHODE   ISLAND. 

The  only  provision  made  by  the  statutes  of  this 
state  applicable  to  gas  and  electric  light  companies 
is  found  in  Public  Laws,  1891,  chapter  975.  This 
act,  after  providing  for  the  granting  of  rights  and 
franchises  in  streets  and  highways,  and  further, 
that  such  grant  conferred  exclusive  rights  for 
twenty-five  j^ears,  and  further,  that  a  corporation 
already  established  was  to  have  a  preference,  and 
further  providing  for  corporations  to  make  a  re- 
turn to  the  treasurer  of  the  town  or  state,  showing 
the  gross  earnings,  for  the  purpose  of  fixing  a  tax 
upon  such  corporation,  and  after  making  other 
provisions,  provides  that  the  present  rates  for  ser- 
vices of  such  corporations  shall  not  be  raised  to  an)^ 
greater  price  than  the  price  actually  charged  by 
it  at  the  time  of  the  granting  of  such  rights  or 
franchises.  The  section  as  to  rates  is  section  4  of 
Public  Laws  of  1891,  chapter  975,  and  is  as  fol- 
lows: 

Sec.  4.  ''No  corporation  which  shall  acquire  ex- 
clusive rights  or  franchises  under  the  provisions  of 
this  chapter  shall  at  any  time  during  the  continu- 
ance thereof   charge  for  its  product,  wares  or  ser- 


128  RATE    REGULATION. 

vice  to  any  town  or  state,  or  the  inhabitants  thereof, 
any  greater  price  actually  charged  by  it  at  the  time 
of  the  granting  of  such  rights  or  franchises,  both 
prices  being  reckoned  in  United  States  gold  coin 
of  the  standard  weight  and  fineness,  or  in  the 
equivalent  thereof  in  actual  value  in  other  lawful 
money  of  the  United  States." 

SOUTH   CAROLINA. 

Provision  is  made  for  the  construction  of  gas 
and  electric  plants,  upon  obtaining  the  consent  of 
the  local  authorities,  by  Article  VIII,  Sections  4 
and  5  of  the  State  Constitution  of  1895.  Code  of 
Laws  of  South  Carolina,  1902,  vol.  2,  p.  87.  Code 
of  Laws  of  South  Carolina,  1902,  vol.  1,  p.  770. 
Section  200  of  the  Civil  Code  provides  for  the  con- 
struction and  operation  of  electric  and  gas  plants 
by  cities. 

Section  2010  provides  for  the  fixing  of  rates  by 
the  board  of  commissioners  of  public  works  for  the 
supply  of  gas  and  electricity,  viz:  ''Said  board  of 
commissioners  of  public  works  shall  be  vested  with 
authority  to  build,  or  contract  for  building  said 
water  works  and  said  electric  light  plant,  and  to 
operate  the  same,  and  shall  have  full  control  and 
management  of  same.  They  may  supply  and  fur- 
nish water  to  the  citizens  of  said  cities  and  towns, 
and  also  electric,  gas  or  other  light;  and  may  re- 
quire and  exact  payment  of  such  rates,  tolls  and 


THE  STATUTES  OP^  THE  VARIOUS  STATES.  129 

charges  as  they  may  estabHsh  for  the  use  of  water 
and  Ughts.  They  may  sell  and  dispose  of  said 
bonds,  and  apply  the  proceeds,  or  so  much  thereof 
as  may  be  necessary,  towards  the  purchase  of  or 
payment  for  said  plants :  Provided,  that  said  board 
shall  make  a  full  statement  to  the  cit}'  or  town 
council  at  the  end  of  each  month  for  receipts  and 
disbursements  of  all  kinds  during  the  preceding 
month.  They  shall  have  no  power  to  incur  any 
indebtedness  without  the  concurrence  of  such 
council." 

Section  2012  provides  for  cities  and  towns  to 
purchase  lands,  etc.,  for  the  purpose  of  electric 
and  gas  plants. 

Section  2021  provides  for  special  elections  as  to 
the  issue  of  municipal  bonds  for  gas  and  electric 
plants,  etc. 

Laws  of  South  Carolina,  1902,  chapter  560,  pro- 
vides for  the  granting  of  exclusive  franchises  for 
furnishing  lights,  etc. 

^'An  act  to  empower  cities  and  towns  of  this 
state  to  give  exclusive  franchises  to  persons  or 
corporations  furnishing  water  or  light  thereto,  re- 
spectively, under  certain  conditions. 

Sec.  1.  ''Be  it  enacted  by  the  general  asseml^ly 
of  the  state  of  South  Carolina  that  all  cities  and 
towns  of  the  state  of  South  Carolina  are  hereby 
empowered  to  grant  to  persons  or  corporations  the 
exclusive  franchise  of  furnishing  light  or  water  to 
9 


130  KATE     REGULATION. 

said  cities  and  towns,  and  the  inhabitants  thereof: 
Provided,  that  no  such  franchise  shall  be  valid  un- 
less it  shall  first  receive  the  vote  of  two-thirds  of 
the  board  of  aldermen,  or  conunon  council,  of  the 
city  or  town  granting  the  same,  and  be  subsequently 
confirmed  by  a  vote  of  a  majority  of  the  qualified 
electors  of  said  city  or  town  votmg  at  an  election 
to  be  called  specially  for  the  purpose :  And  provided 
further  that  the  ordinance  or  resolution  granting 
such  franchise  shall  fix  a  maximum  rate  for  fur- 
nishing water  or  light,  both  for  public  and  private 
consumption,  beyond  which  the  persons  or  corpo- 
ration obtaining  such  exclusive  franchise  shall  have 
no  power  to  charge  or  receive  any  further  price  for 
light  or  water  thus  furnished.  And  provided  that 
no  such  franchise  shall  exceed  a  period  of  thirty 
years,  or  affect  any  existing  contractual  rights." 

SOUTH   DAKOTA. 

There  do  not  appear  to  be  any  laws  in  this 
state  regulating  the  rates  which  a  gas  or  electric 
light  company  may  charge  for  supplying  gas  or 
electricity. 

The  onl}^  statutory  provision  made  for  electric 
light  companies  appears  to  be  contained  in  the 
Laws  of  South  Dakota,  1903,  chapter  107:  Electric 
Light,  Street  Railwa}^  and  Power  Companies.  This 
is  an  act  authorizing  the  incorporation  of  such 
companies. 


THE  STATUTES  OF  THE  SEVERAL  STATES.  131 

Sec.  7,  subdivision  2,  of  said  act  provides,  viz: 
''To  erect  and  maintain  such  buildings,  power- 
houses, plants,  poles,  wires,  trolleys  and  appliances 
as  may  be  necessary  for  the  transmission  of  electric 
power,  and  use  the  same  to  operate  its  street  rail- 
way, and  to  contract  with  any  person  or  corpora- 
tion for  the  furnishing  to  such  person  or  corpora- 
tion of  electric  lights  or  power  for  the  operation 
of  farm  or  other  machinery;  to  contract  with  any 
city,  town,  village,  or  county  for  the  lighting  of 
its  streets,  highways  and  public  buildings,  and  to 
contract  with  any  municipal  corporation  for  the 
furnishing  of  its  inhabitants  with  electric  light  and 
power."" 

It  would  seem  that  in  this  state  the  rates  are 
adjusted  by  contract  between  the  parties. 

TENNESSEE. 

Sections  2205  and  2211  of  Shannon's  Annotated 
Code  of  Tennessee,  1896,  provides  for  gas  com- 
panies. 

Section  2209  (1792).  May  make  and  sell  gas; 
maximum  price. 

Sec.  2209.  ''The  said  company  shall  have  the 
privilege  of  erecting,  establishing  and  constructing 
gas  works,  and  manufacturing  and  vending  gas  in 
said  town,  city  or  village  by  means  of  public  works, 
the  said  company  being  authorized  to  charge  a 
reasonable  price  for  said  gas,  not  higher  than  the 


132  RATE    REGULATION. 

price  allowed  by  existing  charters  to  gas  companies 
heretofore  chartered  in  this  state:  Provided,  that 
said  company  shall  never  charge  more  than  one 
cent  for  every  cubic  foot  of  gas  used  as  may  be 
indicated  by  the  gas  meter,  or  computed  by  the 
ordinary  rules  in  such  cases;  nor  shall  they  ever 
charge  the  authorities  of  said  town,  city  or  village 
more  per  cubic  foot  than  they  are  getting  at  the 
same  time  from  the  people." 

Laws  of  1901,  ch.  166.  Section  1  provides  for 
the  generating  and  sale  of  electricity  for  lighting 
and  power  purposes. 

'^  Electric  street  railway  companies  in  the  state, 
whether  created  under  general  act,  or  special  act, 
are  hereby  authorized  and  empowered  to  furnish 
and  sell  to  persons,  corporations  and  cities  elec- 
tricity for  lighting  and  power  purposes  in  cities 
within  the  state  having  a  population  of  not  more 
than  15,000,  according  to  the  Federal  Census  of 
1900,  or  any  subsequent  Federal  Census." 

Laws  of  1903,  ch.  406.  Provides  for  the  genera- 
tion and  sale  of  electricity  by  railroads  operating 
with  electricity  inter-suburban  and  street  rail- 
roads. 

Sec.  1.  ''To  manufacture,  generate  and  distrib- 
ute electric  light,  electric  heat  and  electric  power 
for  the  purpose  of  supplying  themselves  and  others; 
to  construct,  equip  and  own  factories,  plants,  ma- 
chinery and  all  appliances  for  the  manufacture, 


THE  .STATUTES  OF  THE  SEVERAL  STATES.  183 

generation  and  distribution  of  electric  light,  power 
and  heat;  to  acquire  by  purchase,  lease  or  oth^r 
lawful  contract  electric  plants,  factories,  machin- 
ery, equipments  and  appliances,  and  rights,  ease- 
ments, Hcenses  and  franchises  necessary  or  con- 
venient to  manufacture,  generate,  distribute  and 
sell  electric  light,  power  and  heat;  to  supply  and 
sell  to  others  electric  light,  power  and  heat;  to  ac- 
quire by  purchase,  lease  or  other  lawful  contract, 
water  power,  riparian  rights  and  water  rights,  to- 
gether with  all  such  licenses  and  franchises,  ease- 
ments and  privileges  attached  to,  necessary  or  con- 
venient to  operate  and  use  the  same;  and  to  have 
and  possess  all  such  other  powers  as  shall  be  nec- 
essary to  execute  and  perform  the  powers  herein- 
before granted." 

There  do  not  appear  to  be  any  decisions  ap- 
plicable to  the  question  as  to  what  rates  gas  or 
electric  light  companies  may  charge  for  the  supply 
of  gas  and  electricity. 

(The  foregoing  abstract  contains  all  the  law,  in- 
cluding the  Laws  of  1905,  and  decisions  including 
112  Tenn.  [1904],  besides  digests,  etc.) 

TEXAS. 

Sayles^  Texas  Civil  Statutes,  Volume  1,  Title  18, 
Chapter  4.     Powers  and  duties  of  city  council. 

Art.  421.  May  provide  light  and  gas  for  the  city. 
To  provide  for  lighting  the  streets,  and^  erecting 


134  RATE    REGULATION. 

lamp  posts  and  lamps  therein,  and  regulating  the 
lighting  thereof,  and  from  time  to  time  to  create, 
alter  or  extend  lamp  districts;  to  exclusively  regu- 
late, direct  and  control  the  laying  and  repairing 
of  the  gas  pipes  and  gas  fixtures  in  the  streets, 
alleys,  sidewalks,  and  elsewhere. 

Title  21,    Chapter    2.    Creation   of   corporations. 

Art.  642,  Sec.  13.  The  manufacture  and  sup- 
ply of  gas,  and  the  supply  of  light,  heat  and  electric 
motor  power,  or  either  of  them,  to  the  public  by 
any  means. 

Title  21,  Chapter  9.     Gas  and  ivater  corporations. 

Privileges  of  such  corporations.  Art.  705.  '^An}^ 
gas  or  water  corporation  shall  have  full  power  to 
manufacture  and  sell,  and  to  furnish  such  quan- 
tities of  water  or  gas  as  may  be  required  by  the 
city,  town  or  village,  where  located  for  public  or 
private  buildings,  or  for  other  purposes;  and  such 
corporation  shall  have  power  to  lay  its  mains  and 
conductors  for  conducting  gas  or  water  through 
the  streets,  alleys,  lanes  and  squares  in  such  city, 
town  or  village,  with  the  consent  of  the  municipal 
authorities  thereof,  and  under  such  regulations  as 
they  ma}^  prescribe. 

Art.  706.  May  contract  with  cities,  etc.  ^^The 
municipal  authorities  of  any  city,  town  or  village 
in  which  any  gas  light  or  water  corporation  shall 
exist  are  hereby  authorized  to  contract  with  any 
such  corporation  for  the  lighting  or  supplying  with 


THE  STATUTES  OF  THE  VARIOUS  STATES.    135 

water  the  streets,  alleys,  lots,  squares  and  public 
places  in  any  such  city,  town  or  village." 

UTAH. 

Laws  of  Utah,  1905,  Chapter  42.  Powers  of  city 
councils. 

(This  is  an  amendment  of  section  206  of  Re- 
vised Statutes  of  Utah,  1898.) 

Sec.  1.  ''That  section  206  of  the  Revised  Stat- 
utes of  Utah,  1898,  relative  to  the  powers  of  city 
councils,  as  amended  by  chapter  124  of  the  Laws 
of  Utah,  1901,  and  further  amended  by  chapter  138, 
Laws  of  Utah,  1903,  be  and  the  same  is  hereby 
amended  to  read  as  follows:" 

Use  of  streets  and  parks. 

''10.  To  regulate  the  use  of  streets,  alleys,  ave- 
nues, sidewalks,  cross-walks,  parks,  and  public 
grounds. 

"12.  Lighting,  etc.  To  provide  for  the  Hghting, 
sprinkling  and  cleansing  of  the  same;  provided, 
that  the  city  council  shall  have  the  power  to  create 
sprinkling  districts,  and  levy  a  special  tax  therefor 
on  the  property  to  be  benefited  thereby." 

Gas  and  water  rates,  etc. 

"13.  To  regulate  the  opening  and  uses  thereof  for 
the  laying  of  gas  or  water  mains,  and  pipes,  and 
the  building  and  repairing  of  sewers,  tunnels  and 
drains. 


136  KATE    REGULATION. 

"14:.  Water,  Gas  and  Light  Works.  To  construct 
and  maintain  water  works,  gas  works,  electric  light 
works,  telephone  lines,  street  railways,  or  bath 
houses,  or  to  authorize  the  construction  and  main- 
tenance of  the  same  by  others,  or  to  purchase  or 
lease  an}'  or  all  of  said  works  from  any  person  or 
corporation. 

'^19.  Lighting  Works  and  Contracts.  To  con- 
tract with  and  authorize  an}^  person,  company  or 
association  to  construct  gas  works,  electric  or  other 
lighting  works  in  said  city,  and  give  such  persons, 
company  or  association  the  privilege  of  furnishing 
light  for  the  public  buildings,  streets,  sidewalks  and 
alleys  of  said  cit}'  for  any  length  of  time,  not  ex- 
ceeding three  years. 

"20.  Lighting  Streets.  Regulation  of  sale  of  light 
and  power.  To  provide  for  the  lighting  of  streets, 
laying  down  of  gas  pipes  and  erection  of  lamp  posts ; 
to  regulate  the  sale  and  use  of  gas,  natural  gas,  and 
electric  or  other  lights,  and  electric  power,  the 
charge  therefore  and  the  rent  of  meters  within  the 
city,  and  to  regulate  the  inspection  thereof;  to 
prohibit  or  regulate  the  erection  of  telegraph,  tele- 
phone or  electric  wire  poles  in  the  public  grounds, 
streets  or  alleys,  and  the  placing  of  wires  thereon; 
and  to  require  the  removal  from  the  public  grounds, 
streets  or  alleys  of  any  or  all  such  poles  and  the 
placing  under  ground  of  any  or  all  telegraph,  tele- 
phone or  electric  wires. 


THE  STATUTES  OF  THE  YAKIOUS  STATES.    137 

VERMONT. 

There  do  not  appear  to  be  any  statutes  in  this 
state  regulating  the  price  which  may  be  charged 
for  the  supply  of  gas  or  electricity. 

Provision  seems  to  be  made  in  the  charters  of 
electric  light  companies,  permitting  them  to  con- 
tract for  the  supply  of  electricity,  and  if  the  par- 
ties are  unable  to  agree  upon  the  price,  the  question 
is  submitted  to  the  court  and  a  reasonable  charge 
is  made  by  the  court.  There  are  some  statutory 
provisions  in  regard  to  gas  and  electric  light  com- 
panies, which  are  set  forth  below: 

Vermont  Statutes,  Revision  of  1904,  Chapter  179, 
Page  760.  Telegraph,  Telephone,  Electric  Light  and 
Express  Companies  Town  and  Private  Lines. 

Sec.  4241.  ''Towns  may  construct  for  their  own 
use  telegraph,  telephone  and  electric  light  lines 
upon  and  along  the  highways  and  public  roads 
within  limits,  subject  to  the  provisions  of  this 
chapter  so  far  as  the  same  are  applicable. 

Sec.  4242.  ''Selectmen  ma}^  authorize  persons 
upon  such  terms  as  they  prescribe,  and  sul^ject  to 
the  provisions  of  this  chapter  as  far  as  practicable, 
to  construct  for  private  use  such  lines  along  the 
highways  of  the  town. 

Sec.  4243.  "After  the  erection  of  such  line,  the 
posts  and  structures  thereof  within  the  highways 
shall  be  subject  to  the  regulation  and  control  of  the 
selectmen,  who  may  at  any  time  require  altera- 


138  RATE    REGULATION. 

tions  in  the  location  or  erection  of  such  posts  and 
structures,  and  may  order  the  removal  thereof, 
havmg  first  given  the  parties  notice  and  an  op- 
portunity to  be  heard.  The  town  may  attach  wires 
for  its  own  use  to  such  posts  and  structures  under 
such  terms  and  conditions  as  they  deem  just." 

Electric  plants. 

Sec.  4260.  ''A  domestic  gas  company,  in  addition 
to  the  rights  conferred  upon  it  by  charter,  may 
construct,  purchase,  maintain  and  use  for  lighting 
and  other  legitimate  purposes  an  electric  plant,  or 
consolidate  with  an  electric  light  company,  and 
purchase  and  hold  real  estate  and  personal  prop- 
erty necessary  and  convenient  for  such  purposes. 

Sec.  4261.  "A  domestic  gas  company  ma}'  in- 
crease its  capital  to  an  amount  sufficient  to  carry 
out  the  object  of  the  foregoing  section,  or  borrow 
money  on  bond  or  mortgage  by  a  two-thirds  vote 
of  the  stockholders  thereof  at  a  meeting  specially 
called  for  that  purpose,  and  due  notice  of  such  meet- 
ing shall  be  given  by  publication  in  any  newspaper 
published  in  the  town  or  city  where  the  gas  com- 
pany is  located,  or,  if  no  newspaper  is  published 
therein,  in  a  newspaper  published  in  the  nearest 
town  or  city,  thirty  days  prior  to  such  meeting." 

VIRGINIA. 

There  do  not  appear  to  be  any  statutes  regu- 
lating the  rates  of  gas  or  electric  light  companies  in 


THE  STATUTES  OF  THE  SEVERAL  STATES.  139 

this  state.  The  question  of  the  regulation  of  rates 
of  gas  and  electric  light  companies  does  not  seem  to 
have  been  the  subject  of  judicial  determination  in 
the  courts  of  Virginia. 

The  Virginia  Code  (annotated,  Pollard,  vol.  1, 
1904),  sec.  1294a,  defines  *'A  public  service  cor- 
poration." Under  the  definition  contained  in  this 
section  is  included  a  gas  and  electric  light  company, 
but  there  is  nothing  in  this  section  as  to  the  regu- 
lation of  the  rates  which  may  be  charged. 

Other  sections  of  the  Code,  making  provisions 
for  public  service  corporations  are  section  12946 
(17),  and  sec.  1294i.  Sec.  1294i  is  entitled:  '^Heat, 
Power,  Light,  Electric,  Railway,  Cold  Storage, 
Viaduct,  Conduit,  Bridge,  Gas  and  Water  Com- 
panies." There  is  nothing,  however,  in  this  sec- 
tion which  pertains  to  the  regulation  of  rates  which 
may  be  charged  for  the  supply  of  gas  or  electricity. 
It  appears  that  in  Virginia  all  corporations  are 
under  the  supervision  of  what  is  called  ''The  State 
Corporation  Commission;"  but  up  to  the  present 
time  the  question  as  to  the  regulation  of  rates  of 
gas  and  electric  light  companies  has  not  come  be- 
fore that  commission. 

Section  156  of  the  constitution  of  Virginia  of 
1902  defines  the  powers,  duties  and  methods  of 
procedure  of  the  State  Corporation  Commission, 
and  under  this  section  of  the  constitution  it  seems 
that  this  commission  has  entire  supervision  of  the 


140  EATE    REGULATION. 

conduct  of  corporations  in  Virginia.  This  section 
is  156  of  the  constitution,  and  is  found  in  the  Vir- 
ginia Code  (annotated,  Pollard,  vol  1,  1904). 

WASHINGTON. 

Ballinger^s  Annotated  Code  of  Statutes  of  Wash- 
ington, vol.  1  (1897).  "Of  Cities  of  the  First  Class.'' 

Sec.  739.  Powers  enumerated,  subdivision  15. 

''To  provide  for  lighting  the  streets  and  all  pub- 
lic places,  and  for  furnishing  the  inhabitants  thereof 
with  gas  or  other  lights,  and  to  erect  or  otherwise 
acquire  and  maintain  the  same,  or  authorize  the 
erection  and  maintenance  of  such  works  as  may 
be  necessary  and  convenient  therefor,  and  to  regu- 
late and  control  the  use  thereof." 

Chapter  128  of  the  Laws  of  Washington,  1899, 
authorizing  the  municipal  ownership  of  certain 
public  utilities,  after  making  provision  for  the  regu- 
lation of  water  supply,  sewerage,  etc.,  provides  for 
the  regulation  of  the  supply  of  gas  and  electricity, 
viz: 

Sec.  1.  ''.  .  .  That  any  incorporated  city  or 
town  within  the  state  be,  and  is  hereby,  authorized 
.  .  .  to  construct,  condemn  and  purchase,  pur- 
chase, acquire,  add  to,  maintain  and  operate  works, 
plants  and  facilities  for  the  purpose  of  furnishing 
such  city  or  town  and  the  inhabitants  thereof,  and 
any  other  person,  with  gas,  electricity  and  other 
means,  power  facilities  for  lighting,  heating,  fuel 


THE  STATUTES  OF  THE  SEVERAL  STATES.  141 

and  power  purposes,  public  and  private,  with  full 
authority  to  regulate  and  control  the  use,  distribu- 
tion and  prices  thereof;  and  to  authorize  the  con- 
struction of  such  plant  or  plants  by  others  for  the 
same  purposes,  and  to  purchase  such  power  from 
others,  when  delivered  within  such  city,  for  its  own 
use  and  for  the  purpose  of  selling  to  its  inhabitants 
and  other  persons  doing  business  within  such  city, 
and  to  regulate  and  control  the  use  and  price  of 
electric  power  so  supplied." 

WISCONSIN. 

Statutes  of  1898. 

Power  of  council.  Secs.  925-996.  "The  council 
shall  have  power  to  legislate  on  all  matters  with 
reference  to  the  construction,  purchase,  operation, 
management  and  protection  of  water  works  or 
lighting  works  for  the  city,  not  contravening  the 
provisions  of  this  chapter,  the  constitution  or  laws 
of  the  state,  provided  other  provisions  relating  to 
such  works,  except  as  herein  otherwise  provided, 
shall  l3e  adopted  by  a  vote  of  not  less  than  three- 
fourths  of  all  its  members.  Sec.  96,  ch.  326,  1889,^ 
and  sec.  3,  ch.  294,  1895." 

Purchase  of  lighting  plant;  appraisal;  arbitration; 
judgment.  Secs.  925-997a.  '^ Whenever  any  city 
shall  have  determined  to  own  or  operate  its  own 
lighting  plant,  pursuant  to  secs.  925-952,  925-996 
and  925-997,  for  the  purpose  of  furnishing  light  to 
the  inhabitants  of  such  cit}^,  other  than  foi:  lighting 


142  RATE    REGULATION. 

the  streets,  public  buildings  and  parks,  and  at  such 
time  there  shall  be  in  operation  lighting  works 
owned  and  operated  by  a  person  or  private  cor- 
poration established  under  authority  of  such  city, 
such  city  shall  not  erect  competing  works  for  pri- 
vate lighting,  provided  the  owners  of  such  works 
shall  be  willing  to  sell  the  same  to  the  city  as  herein- 
after provided.  The  price  to  be  paid  for  such 
existing  lighting  works  shall  ])e  its  fair  value  for 
the  purpose  for  which  it  is  used,  including  as  an 
element  of  value  the  earnings  derived  therefrom. 
No  portion  of  such  works  to  be  estimated,  how- 
ever, at  less  than  its  fair  value  for  any  other  pur- 
pose. The  owners  of  such  existing  works  shall, 
within  thirty  days  after  service  on  them  of  notice 
of  such  determination  by  the  city,  file  with  the  city 
clerk  a  schedule,  describing  the  whole  of  such  works, 
the  terms  and  price  they  will  sell  for  and  when  such 
works  will  be  delivered  to  the  city.  In  case  such 
city  and  such  owners  cannot  agree  as  to  the  terms 
of  the  sale,  then  the  city  and  such  owners  shall 
each  appoint  an  appraiser  and  these  two  shall  name 
a  third,  all  such  appraisers  to  be  citizens  of  this 
state  residing  out  of  the  county  in  which  said  city 
is,  unless  otherwise  agreed.  Each  shall  then,  within 
ten  days  after  his  appointment  and  acceptance,  file 
with  the  city  clerk  his  oath  of  office,  and  they  shall 
immediately  proceed  to  hear  the  parties  interested, 
examine  the  property  and  determine  the  fair  value 


THE  STATUTES  OF  THE  SEVERAL  STATES.  143 

of  such  works,  filing  their  findings  and  conclusions 
within  thirty  days  from  the  time  of  their  first  meet- 
ing with  such  clerk,  and  describing  such  property, 
and  the  price,  terms  and  time  of  delivery  agreed 
upon.  Either  party  may  within  thirty  days  after 
such  filing  petition  the  Circuit  Court  of  the  county 
in  which  said  city  is  situated  for  an  adjudication 
between  the  parties,  setting  forth  the  facts  and  a 
certified  copy  of  such  findings,  and  thereafter  the 
said  court,  or  its  presiding  judge,  after  giving  both 
parties  an  opportunity  to  be  heard  at  a  time  and 
place  to  be  fixed  by  order,  shall  appoint  a  commis- 
sion of  three  disinterested  persons,  all  non-residents 
of  such  county,  who  shall  file  their  form  of  facts 
as  set  forth  and  give  the  parties  an  opportunity 
to  be  heard,  examine  the  property,  receive  evidence 
and  thereupon  adjudicate  upon  all  matters  properl}^ 
submitted  to  the  arbitrators  in  accordance  with  the 
provisions  of  this  section,  and  what  the  price,  time 
and  other  conditions  of  the  sale  and  delivery  shall 
be.  Such  commissioners  shall  act  under  the  su- 
pervision of  the  Circuit  Court,  and  shall  file  their 
award  for  revision  or  confirmation  by  the  court. 
The  court  shall  have  jurisdiction  upon  the  revision 
or  confirmation  of  the  award  of  the  arbitrators,  and 
enter  the  judgment  according  to  the  equity  and 
to  enforce  the  same  as  in  equitable  actions.  This 
section  shall  not  apply  to  cities  of  the  first  class." 
Rates  for  water  and  light. 


144  RATE    REGULATION. 

Secs.  925-989.  ''When  cities  own  the  water 
works  or  Hghting  works,  the  water  rates  or  charges 
for  hghting  shall  be  collected  by  the  treasurer  and 
be  first  devoted  to  the  expense  of  maintainmg  and 
operating  the  works,  paying  the  principal  and  in- 
terest of  any  indebtedness  created  in  the  construc- 
tion thereof,  and  the  balance,  if  any,  shall  be  paid 
into  the  general  fund.  The  common  council  of 
every  city  which  shall  construct  or  own  and  operate 
lighting  works  to  supply  the  city  and  its  inhabi- 
tants with  light  may,  by  ordinance,  fix  the  rates 
to  be  charged  for  light  furnished  the  inhabitants 
thereof,  and  provide  for  the  collection  of  the  same 
either  quarterly,  semi-annually,  in  advance  or  other- 
wise; provided  such  rates  shall  be  uniform  for  like 
service  in  all  parts  of  the  city.  The  provisions  of 
the  next  following  section  shall  appty  to  the  listing 
and  collection  of  unpaid  rates  or  charges  for  light 
so  furnished,  so  far  as  they  are  apphcable." 

Electrical  companies. 

Sec.  17806.  ''Any  corporation  organized  under 
general  or  special  law  for  the  purpose  of  furnishing 
heat,  light,  power  or  signals  by  electricity  may, 
with  the  consent  of  and  in  the  manner  agreed  upon 
with  the  authorities  of  any  city  or  village,  use  any 
street,  alley,  lane,  park  or  public  grounds  for  con- 
structing, maintaining  and  operating  its  lines  with 
all  necessar}'  wires,  conduits  and  appurtenances, 
for  the  purpose  of  supplying  light,  heat,  power  or 


THE  STATUTES  OF  THE  SEVERAL  STATES.  145 

signals  to  such  city  or  village,  or  to  any  building, 
manufactory,  industry,  or  public  or  private  house 
therein :  Provided  no  permanent  injury  shall  be  done 
to  such  street,  alley,  lane,  park  or  public  ground. 
The  provisions  of  this  section  shall  apply  to  any  cor- 
poration heretofore  organized  and  now  operating  an 
electric  light  plant  by  consent  of  the  authorities  of 
any  city  or  village.  Such  corporation  shall  also  have 
the  powers  conferred  by  sec.  1775,  and  it  shall  be  the 
duty  of  such  corporation,  and  of  each  and  every  per- 
son engaged  in  the  transmission  of  electrical  energy, 
to  provide  by  suitable  insulation,  return  wires  or 
other  means  against  injury  to  persons  or  property 
by  leakage,  escape  or  induction  of  any  electric  cur- 
rent. Neglect  of  these  provisions  shall  entitle  any 
person  thereby  endangered  or  injured  to  a  prelimi- 
nary injunction  preventing  further  use  of  such  cur- 
rent until  such  insulation  be  made." 

Laws  of  1901,  ch.  95. 

''An  act  to  enable  cities  of  the  fourth  class  to 
build  and  maintain  public  water  and  electric  light- 
ing works.  Cities  may  own  personal  and  real  prop- 
erty for  purposes  of  act. 

Sec.  1 .  ''Every  city  of  the  fourth  class  in  the  state 
of  Wisconsin,  whether  operating  under  a  general  or 
special  charter,  is  hereby  authorized  and  empowered 
to  purchase,  lease  or  construct  steam  power  or  water 
power  for  the  purpose  of  maintaining  and  operating 
for  public  use  lighting  plants  and  water  works,  and 
10 


146  KATE     REGULATION. 

for  such  purpose  may  lease,  purchase  and  hold  the 
necessary  real  and  personal  property." 

Authority  granted  hy  act  to  he  authorized  by  vote 
of  people. 

Sec.  2.  ''The  authority  and  power  granted  in 
sec.  1  of  this  act  shall  be  exercised  only  when  the 
same  shall  have  been  certified  by  a  two-thirds  vote 
of  the  voters  in  such  city  at  a  special  election  called 
for  that  purpose  as  special  elections  are  now  au- 
thorized to  be  called:  Provided,  however,  that  no 
such  exercise  of  power  shall  require  the  expendi- 
ture of  a  sum  greater  than  three  per  cent  in  any 
one  year  on  the  taxable  property  of  said  city." 
Conflicting   laws   repealed. 

Sec.  3.  "All  laws  interfering  with  the  provisions 
of  this  act  are  hereby  repealed. 

Sec.  4.  ''This  act  shall  take  effect  and  be  in  force 
from  and  after  its  passage  and  publication." 

Laws  of  1901,  ch.  236.     An  Act  relating  to  electric 
plants. 

The  city  may  furnish  service  without  limit. 
Sec.  1.  Every  city  which  owns  and  operates  an 
electric  light  plant  may  supply  light  not  only  to 
such  city  and  its  inhabitants,  but  also  to  dwellings 
or  places  of  business  outside  the  boundaries  of  such 
city,  by  means  of  a  line  or  lines  of  poles  and  wires 
extended   outside   of  said  boundaries. 

Sec.  2.  This  act  shall  take  effect  and  be  in  force 
from  and  after  its  passage  and  publication. 


THE  STATUTES  OF  THE  SEVERAL  STATES.  147 

DISTRICT  OF  COLUMBIA. 

Acts   affecting    the   District    of    Columbia,    1903. 
57th  Congress,  p.  12,  Electrical  Department. 

Lighting.  ''For  illuminating  material,  light,  ex- 
tinguishing, repairing  and   cleaning    public  lamps 
on  avenues,  streets,  roads  and  alleys,  purchasing 
and  expense  of  erecting  and  maintaining  new  lamp 
posts,   street  designations,   lanterns   and   fixtures; 
moving  lamp  posts,  painting  lamp  posts  and  lan- 
terns; replacing  and  repairing  lamp  posts  and  lan- 
terns damaged  or  unfit  for  service ;  for  rent  of  store- 
room, cartage  of  material,  livery  and  other  necessar}^ 
items  and  service  $209,000:  Provided,  that  not  more 
than  $20  per  annum  for  each  street  lamp  shall  be 
paid  for  gas,  and  not  more  than  $24  for  oil,  light- 
ing,   extinguishing,    repairing,    painting,    cleaning, 
purchasing  and  expense  of  erecting  and  maintain- 
ing new  lamp  posts,  street  designations,  lanterns 
and  fixtures  under  any  expenditure  provided  for 
in  this  act.     And  during  the  fiscal  years  1903  and 
1904  the  price  prescribed  by  Congress  for  lighting 
each  street  lamp  in  the  District  of  Columbia  with 
gas  or  oil  shall  be  construed  to  include  the  cost  of 
the   illuminating  material  used,   lighting  and  ex- 
tinguishing   lamps,    repairing,    painting,   cleaning, 
purchasing  and  expense  of  erecting  and  maintain- 
ing lamp  posts,  street  designations,  lanterns  and 
fixtures:  Provided,  that  all  of  said  lamps  shall  burn 


148  KATE    REGULATION. 

every  night  on  an  average  from  fifteen  minutes 
after  smiset  to  forty-five  minutes  before  sunrise. 
Provided  further:  That  before  any  expenditures 
are  made  from  the  appropriations  herein  provided 
for,  the  contracting  gas  companies  shall  equip  each 
street  lamp  with  a  self-regulating  burner  and  tip, 
so  combined  and  adjusted  as  to  secure  under  all 
ordinary  variations  of  pressure  and  density  a  con- 
sumption of  five  cubic  feet  of  gas  per  hour:  Pro- 
vided further,  that  not  more  than  $15,000  of  said 
appropriation  may  be  expended  for  fighting,  ex- 
tinguishing, repairing,  painting  and  cleaning  public 
lamps  of  a  higher  candle-power  than  those  provided 
for  above,  and  not  less  than  sixty  candle-power, 
which  lamps  shall  not  cost  to  exceed  $28  per  lamp, 
and  shall  otherwise  be  subject  to  the  restrictions  of 
this  paragraph:  And  provided  further,  that  during 
the  fiscal  year  1904  the  illuminating  power  of  the 
gas  furnished  by  any  gas  light  company,  person 
or  persons  in  the  District  of  Columbia  shaU  be 
equal  to  twenty-two  candles,  understanding  the 
requirement  as  to  candle  power  prescribed  by  sec- 
tion 3  of  the  regulating  and  sale  of  gas  in  the  Dis- 
trict of  Columbia."     Approved  June  6,    1896. 

For  Electricity.  "Arc  lighting,  including  the  nec- 
essary inspection,  and  for  extensions  for  such  ser- 
vice, not  exceeding  $80,000 :  Provided,  that  not  more 
than  $80  per  annum  shall  be  paid  for  any  electric 
arc  light  burning  from  fifteen  minutes  after  sunset 


THE  STATUTES  OF  THE  SEVERAL  STATES.  149 

to  forty-five  minutes  before  sunrise,  and  operated 
wholly  by  means  of  underground  wire;  and  each 
arc  light  shall  be  of  not  less  than  1,000  actual  candle- 
power,  and  no  part  of  this  appropriation  shall  be 
used  for  electric  lighting  by  means  of  wires  that 
may  exist  on  or  over  any  of  the  streets  or  avenues 
of  the  city  of  Washington." 

There  does  not  appear  to  be  any  law  regulating 
the  rates  which  gas  or  electric  companies  may 
charge  for  the  supply  of  electricity,  but  there  is 
some  legislation  affecting  gas  and  electric  com- 
panies, which  is  set  forth  below. 

United  States  Statutes,  1895-1896,  ch.  335,  p. 
251.  An  act  relating  to  the  sale  of  gas  in  the  Dis- 
trict of  Columbia.     (June  6,  1896.) 

''Be  it  enacted  by  the  Senate  and  House  of 
Representatives  of  the  United  States  of  America 
in  Congress  assembled  that  the  Washington  Gas- 
light Co.,  of  the  District  of  Columbia,  is  authorized 
to  charge  and  collect  after  the  first  day  of  July, 
1896,  for  illuminating  gas  furnished  to  and  paid 
for  by  private  consumers  in  the  District  of  Colum- 
bia at  the  rate  of  not  exceeding  $1.10  per  1,000 
cubic  feet  until  the  first  day  of  July,  1901,  after 
which  last-mentioned  date  the  rates  shall  not  ex- 
ceed $1.00  per  1,000  cubic  feet;  and  that  after  the 
first  day  of  July,  1896,  the  Washington  Gas  Light 
Co.  of  the  District  of  Columbia  shall  furnish  to  the 
United  States  Government  in  the  District  of  Co- 


150  RATE    REGULATION. 

lumbia,  gas  at  the  rate  of  $1.00  per  1,000  cubic  feet, 
provided  that  if  consumers,  other  than  the  Gov- 
ernment, shall  not  pay  monthly  any  gas  bill  within 
ten  days  after  the  same  shall  have  been  presented, 
said  company  may  charge  and  collect  from  said 
consumer,  so  failing  to  pay  said  bill  as  aforesaid, 
$1.25  per  1,000  cubic  feet  for  the  gas  furnished  to 
said  consumer  during  said  month. 

Sec.  2.  "That  the  Georgetown  Gas  Light  Co. 
doing  business  in  that  part  of  the  District  of  Co- 
lumbia formerly  known  as  Georgetown  is  author- 
ized to  charge  and  collect  after  the  first  day  of 
July,  1896,  for  illuminating  gas  furnished  to  and 
paid  for  by  private  consumers  in  that  part  of  the 
District  of  Columbia  at  the  rate  of  not  exceeding 
$1.35  per  1,000  cubic  feet  until  the  first  day  of 
July,  1901;  after  which  last-named  date  the  rate 
shall  not  exceed  $1.25  per  1,000  cubic  feet;  and 
that  after  the  first  day  of  July,  1896,  the  said 
Georgetown  Gas  Light  Co.  shall  furnish  to  the 
United  States  Government  of  the  District  of  Co- 
lumbia, gas  at  the  rate  of  $1.25  per  1,000  cubic  feet: 
Provided,  that  if  consumers,  other  than  the  Gov- 
ernment, shall  not  pay  monthly  any  gas  bill  within 
ten  days  after  the  same  shall  have  been  presented 
said  company  may  charge  and  collect  from  said 
consumer,  so  failing  to  pay  said  bill  as  aforesaid, 
$1.50  per  1,000  cubic  feet  for  the  gas  furnished 
said  consumer  during  said  month." 


CASES    CITED. 


Aldnutt    V.    Ingliss,    12    East. 

(Eng.)    527 18 

Alpena  Electric  Co.  v.  City  of 

.\lpena,  130  Mich.  413 3 

Allen,  State  v.,  178  Mo.  555..  .  3 
Ames,    Smyth    r.,    169    U.    S. 

466 3,  5,  7,  10,  14,  35 

Avondale,  Cincinnati  Gas  Light 

&  Coke  Co.  v.,  43  Ohio  St.  257       4 

B 

Bartlett,  Spring  Valley  Water 

Worksv.,  16Fed.  Rep.  615.  .  7 
Beidehnan,  Dow  v.,  125  U.  S. 

680 ^G 

Brass  v.  Stoeser,  153  U.  S.  391  45 
Brymer   v.   Butler  Water  Co., 

179   Pa.   231 6,9 

Budd  I'.  New  York,  143  U.  S. 

517 45 

Butler  Water  Co.,  Brymer  v., 

179  Pa.  231 6,9 


Capital  City  Gas  Co.  v.  Des 
Moines,  72  Fed.  Rep.  818.  .  .   6,  9 

Chicago,  Burlington  tt  Quincy 
R.  R.  Co.  V.  Iowa,  94  U.  S. 
155 2, 14, 22 


PAGE 

Chicago  &  Grand  Trunk  Ry.  Co. 
V.  Wellman,  143  U.  S.  339.  .   3,  47 

Chicago,  Milwaukee  &  St.  Paul 
Ry.  Co.  V.  Minnesota,  134 
U.  S.  418 3,5,  7,  24 

Chicago  &  N.  W.  R.  R.  Co., 
Lawrence  v.,  94  U.  S.  164  2, 14, 23 

Chicago  &  N.  W.  R.  R.  Co., 
Peik   v.,  94  U.  S.  164.  .   2,  14,  23 

Cincinnati  Gas  Light  &  Coke 
Co.  I'.  Avondale,  43  Ohio  St. 
257 4 

Cincinnati  Gas  Light  &  Coke 
Co.,  State  ex  rel.  Attorney 
General?'.,  18  Ohio  St.  262.  .       4 

Cincinnati,  Hamilton  &  Dayton 
R.  R.  Co.  V.  Village  of  Bowl- 
ing Green,  57  Ohio  St.  336.  .    4,  7 

City  of  Alpena,  Alpena  Elec- 
tric Co.  v.,  130  Mich.  413.  .  .       3 

City  of  Des  Moines  v.  Des 
Moines  Water  Works  Co.,  95 
Iowa,   348 3 

City  of  Des  Moines,  Des  Moines 
Water  Works  Co.  v.,  95  Iowa, 
348 3 

City  of  Leadville,  Leadville 
Water  Co.  v.,  22  Col.  297 ...       3 

City  of  Memphis,  New  Mem- 
phis Gas  Light  Co.  v.,  72 
Fed.   Rep.  952 3,5,  7,  32 

'     151 


152 


CASES    CITED. 


PAGE 

City  of  Negaunee,  Mitchell  v., 
113  Mich.  359 3 

City  of  South  Omaha,  Sharp  v., 
53  Neb.  700 3 

City  of  St.  Paul,  St.  Paul  Gas 
Light  Co.  v.,  91  Minn.  521 .  .       3 

City  of  Wilkesbarre  v.  The 
Spring  Brook  Water  Supply 
Co.,  4  Lack.  Leg.  N.  (Pa.)  367       6 

City  of  Wymore,  Wabaska 
Electric  Co.  v.,  GO  Neb.  199  3,  7 

Cleveland  Gas  Light  &  Coke 
Co.,  State  ex  rel.  Hadden  v., 
3  Ohio  Circuit  Rep.  251 4 

Clinton  Electric  Light,  H.  &  P. 
Co.  V.  Snell,  95  111.  App.  552       3 

Columbus  Gas  Light  &  Coke 
Co.,  The,  State  ex  rel.  The 
Attorney  General  v.,  34  Ohio 
St.  572 4 

Cotting  V.  Kansas  City  Stock 
Yards  Co.,  183  U.  S.  79  3,  5, 10,  43 

Covington,  etc.,  Turnpike  Co. 
V.  Sandford,  164  U.  S.  578.  .      49 

D 
Des  Moines,  Capital  City  Gas 

Co.  v.,  72  Fed.  Rep.  818.  ..  .   6,  9 
Des  Moines  Water  Works  Co. 

V.    City   of   Des   Moines,   95 

Iowa,   348 3 

Des  Moines  Water  Works  Co., 

City  of  Des  Moines  v.,  64  N. 

W.  Rep.  269 3 

Dow  V.  Beidelman,   125  U.  S. 

680 46 

E 
Edison    Electric    Illuminating 
Co.,  Gould  v.,  29  Misc.  242.  .       3 


Farmers'  Loan  &  Trust  Co., 
Reaganv.,154U.S.362  3,5,7,26 

Farmers'  Loan  &  Trust  Co., 
Stone  v.,  116  U.  S.  307 6 

G 

Gill,  St.  Louis  &  San  Francisco 
Ry.  Co.  v.,  156  U.S.  649....      48 

Gould  V.  Edison  Electric  Il- 
luminating Co.,  29  Misc.  242       3 

Gas  Light  Co.,  People  v.,  45 
Barb.  (N.  Y.)  136 6 

H 

Hale,  People's  Gas  Light  & 
Coke  Co.  v.,  94  III.  App.  406  3,6,9 

Higginson,  Smyth  v.,  169  U.  S. 
466 5 

I 

Illinois,  Wabash  Ry.  Co.  v.,  118 

U.  S.  557 46 

Illinois,     Munn    v.,    94    U.    S. 

113 2,7,14,15 

Inglis,    Aldnutt    v.,    12    East. 

(Eng.)    527 18 

Iowa,   Chicago,    Burlington   & 

Quincy  R.  R.  Co.  v.,  94  U.  S. 

155 2,14,22 

Ironton  Gas  Co.,  State  ex  rel. 

Attorney  General  v.,  37  Ohio 

St.  45 4 


Jasper,    San    Diego    Land    & 
Town  Co.  v.,  189  U.  S.  439. .       6 

K 

Kansas  City  Stock  Yards  Co., 
Cotting  V.  183  U.  S.  79  3, 5, 10, 43 


CASES    CITED. 


153 


PAGE 

L 

Laclede  Gas  Light  &  Coke  Co., 
State  v.,  102  Mo.  App.  472 .  .       3 

Lawrence  v.  Chicago  &  N.  W. 
R.  R.  Co.,  94U.  S.  164....   2,14 

Leadville  Water  Co.  v.  City  of 
Leadville,  22  Col.  297 3 

M 
Milwaukee,     Gas     Light     Co. 

Shepard  v.,  6  Wis.  539 4 

Minnesota,  Chicago,  Milwaukee 

&  St.  Paul    Ry.  Co.  v.,  134 

U.  S.  418 3,5,7,24 

Mitchell  V.  City  of  Negaunee, 

113  Mich.  359 3 

Munn    V.    Illinois,    94     IJ.     S. 

113 2,7,14,15 

Mutual  Gas  Company,  Pingree 

v.,  107  Mich.  156 3 

Mutual  Gas  Company,  Williams 

v.,  52  Mich.  499 3 

N 
National  City,  San  Diego  Land 

&  Town  Co.   v.,    174   U.  S. 

739 3,  5,  12,  40,  51 

New  Memphis  Gas  Light  Co.  v. 

City    of   Memphis,    72   Fed. 

Rep.  952 3,5,7,32 

New  York,  Budd  v.,  143  U.  S. 

517 45 

0 

Opinion  of  the  Justices  of  the 
House  of  Representatives, 
150  Mass.  592 3 

P 

Peik  V.  Chicago  &  N.  W.  R.  R. 
Co.,  94  U.  S.  164 2,14,23 


PAGE 

People  V.  Gas  Light  Co.,  45 
Barb.  (N.  Y.)  136 6 

People's  Gas  Light  &  Coke  Co. 
?'.  Hale,  94  111.  App.  406.  .  3,  6,  9 

Pingree  r.  Mutual  Gas  Com- 
pany, 107  Mich.  156 3 

R 
Railroad     Commission     Cases, 

116  U.  S.  307,  331 29,45 

Reagan    v.    Farmers'    Tvoan    & 

Trust  Co.,  154  U.  S.  362  3,  5,  7,  26 
Redlands    L.    &    C.    Domestic 

Water  Co.  v.  Redlands,  121 

Cal.  312 6 

Redlands,    Redlands   L.    &   C. 

Domestic  Water  Co.  v.,  121 

Cal.  312 6 

Revere  Water  Co.   Turner   v., 

171  Mass.  329 6 

S 

San  Diego  Land  &  Town  Co.  v. 
Jasper,  189  U.  S.  439 6 

San  Diego  Land  &  Town  Co.  v. 
National  City,  174  U.  S.  739 
3,  5,  12,  40,  51 

San  Joaquin  &  Kings  River 
Canal  &  Irrigation  Co.,  Stan- 
islaus County  v.,  192  U.  S. 
201 3,6,12,54 

Sandford,  Covington,  etc., 
Turnpike  Co.  v.,  164  U.  S. 
578 49 

Schottler,  Spring  Valley  Water 
Works  Co.  v.,  110  U.  S.  347  3,7 

Sedalia  Gas  Light  Co.,  State  v., 
34  Mo.  App.  501 3 

Sharp  V.  City  of  South  Omaha, 
53  Neb.  700 3 


154 


CASES    CITED. 


PAGE 

Shepard  v.  Milwaukee  Gas 
Light  Co.,  6  Wis.  539 4 

Smith,  Smyth  r.,  169  U.  S.  466       5 

Smith  V.  Higginson,  169  U.  S. 
466 5 

Smyth  V.  Ames,  169  U.  S. 
466 3,5,9,10,14,35 

Smyth  V.  Smith,  169  U.  S.  466       5 

Snell,  Clinton  Electric  Light, 
H.  &P.Co.r.,95Ill.App.552       3 

Spring  Valley  Water  Works  v. 
Schottler,  110  U.  S.  347 3,  7 

Spring  Valley  Water  Works  v. 
Bartlett,  16  Fed.  Rep.  615.  .       7 

Spring  Brook  Water  Supply 
Co.,  City  of  Wilkesbarre  v., 
4  Lack.  Leg.  N.  (Pa.)  367..       6 

St.  Louis  &  San  Francisco  Ry. 
Co.  V.  GiU,  156  U.  S.  649 48 

St.  Paul  Gas  Light  Co.  v.  City 
of  St.  Paul,  91  Minn.  521 ..  .        3 

Stanislaus  County  v.  San  Joa- 
quin &  Kings  River  Canal  & 
Irrigation  Co.,  192  U.  S. 
201 3,  6,   12,  54 

State  ex  rel.  Hadden  v.  Cleve- 
land Gas  Light  it  Coke  Co., 
3  Ohio  Circuit  Rep.  251 4 

State  ex  rel.  Attorney  General 
V.  Cincinnati  Gas  Light  & 
Coke  Co.,  18  Ohio  St.  262.  .       4 

State  ex  rel.  The  Attorney  Gen- 
eral  V.   The   Columbus   Gas 


PAGE 

Light  &  Coke  Co.,  34  Ohio 

St.  572 4 

State  ex  rel.  Attorney  General 

V.  Ironton  Gas  Co.,  37  Ohio 

St.  45 4 

State  V.  Allen,  178  Mo.  555 3 

State  V.  Laclede  Gas  Light  Co., 

102  Mo.  App.  472 3 

State  V.  Sedalia  Gas  Light  Co., 

34  Mo.  App.  501 3 

Stoeser,  Brass  v.,  153  U.  S.  391  45 
Stone    V.    Farmers'    Loan    & 

Trust  Co.,  116  U.  S.  307 6 

T 
Turner   r.   Revere   Water  Co., 
171  Mass.  329 6 

V 

^^illage  of  Bowling  Green,  Cin- 
cinnati, Hamilton  &  Dayton 
R.  R.  Co.  ().,  57  Ohio  St.  336  4,  7 

W 

Wabash  Ry.  Co.  v.  Illinois,  118 

U.  S.  557 46 

Wabaska  Electric  Co.  v.  City 

of  Wymore,  60  Neb.  199. .  .  3,  7 
Wellman,    Chicago    &    Grand 

Trunlc  Ry.  Co.  v.,  143  U.  S. 

339 3,  47 

Williams  v.  Mutual  Gas  Co.,  52 

Mich.   499 3 


CASES  DIGESTPJD. 

A 

PAGE 

Ames,  Smyth  v.,  169  U.  S.  466 35 

C 

Chicago,  BurUngton  &  Qiiincy  R.  R.  Co.  v.  Iowa,  94  U.  S. 

155 22 

Chicago,  Milwaukee  &  St.  Paul  Ry.  Co.  v.  Minnesota,  134 

U.  S.  418 24 

Chicago  &  N.  W.  R.  R.  Co.,  Peik  v.,  94  U.  S.  164 23 

City  of  Memphis,  New  Memphis  Gas  Light  Co.  v.,  72  Fed. 

Rep.  952 32 

Cotting  V.  Kansas  City  Stock  Yards  Co.,  183  U.  S.  79.  .  .  .   43 

F 

Farmers'  Loan  &  Trust  Co.,  Reagan  v.,  154  U.  S.  362.  .  .  .   26 

I 

Illinois,  Munn  v.,  94  U.  S.  113 15 

Iowa,  Chicago,  Burlington  &  Quincy  R.  R.  Co.  v.,  94  U.  S. 
155 ' 22 

K 

Kansas  City  Stock  Yards  Co.,  Cotting  v.,  183  U.  S.  79 43 

*     155 


156  CASES    DIGESTED. 

M 

PAGE 

Minnesota,  Chicago,  Milwaukee  &  St.  Paul  Ry.  Co.  v.,  134 

U.  S.    418 24 

Munn  V.  Illinois,  94  U.  S.  113 15 

N 

National  City,  San  Diego  Land  &  Town  Co.  v.,  174  U.  S. 

739 40 

New  Memphis  Gas  Light  Co.  v.  City  of  Memphis,  72  Fed. 

Rep.  952 32 

P 

Peik  V.  Chicago  &  N.  W.  R.  R.  Co.,  94  U.  S.  164 23 

R 

Reagan  v.  Farmers'  Loan  &  Trust  Co.,  154  U.  S.  362 26 

S 

San  Diego  Land  &  Town  Co.  v.  National  City,  174  U.  S.  739  40 
San  Joaquin  &  Kings  River  Canal  &  Irrigation  Co.,  Stan- 
islaus County  i;.,  192  U.  S.  201 54 

Smyth  V.  Ames,  169  U.  S.  466 35 

Stanislaus  County  v.  San  Joaquin  &  Kings  River  Canal 
&  Irrigation  Co.,  192  U.  S.  201 54 


INDEX. 

(The  figures  refer  to  pages.) 

PAGE 

ACTIONS, 

criminal,    15 

civil, 

injunction, 22,  23,  27,  32,  35 

to    determine    constitutionality, 43 

to  set  aside  ordinance, 54 

ARKANSAS,  58 
Gas  &  Electric  Light, 
city    council, 

books  to  be  produced  before, 59 

complaint  to, 58 

fines,     60 

fixes    rates, 59 

misdemeanor, 

refusal  to  charge  rates  fixed  by, 60 

CALIFORNIA,    60 

Gas  &  Electric  Light, 
common  council, 

may  contract  for  gas, 62 

constitution, 

authorizes  legislation, 60 

no  legislation  under, 61 

streets, 

use  of,  regulation  of  rates  by  municipality  for,     61 

*    157 


158  IXDEX 

PAGE 

CASES    DIGESTED  155-156 

annexed  to  Cases  Cited. 

COLORADO, 62 

Gas  &  Electric  Light, 
municipality, 

gas,  authorized  to  contract  for, 62 

rate  regulation, 

must  be  reasonable, 63 

CONGRESS, 

action  by, ° 

CONNECTICUT, 64 

Gas  &  Electric  Light, 
commission, 

electric  light,  regulation  of  rates,  by, 64-66 

gas  light,  regulation  of  rates  by, 65-67 

municipalities, 

gas  and  electric  plants, 

may    erect, 64 

CONSTITUTIONAL, 

regulation  of  rates  is, 2,  4,  5,  15 

see  Cases  Digested. 

COURTS, 

power  of  courts  to  review  rates, 4 

determination  of  reasonableness  of  rates  by, 3,  4,  5 

DISTRICT  OF  COLUMBIA, 147 

Gas  &  Electric  Light, 

rates    for, 147-150 

DUE  PROCESS  OF  LAW, 

rates,  fixing  of,  requires, 8,  25,  26,  33 


INDEX.  159 

PAGE 

ELECTRIC  LIGHT  COMPANIES, 
see    several    states. 

FLORIDA, 67 

Gas  &  Electric  Light, 

city    or   town    council,  regulation  of  rates  by.. 67,  6S 

GAS    LIGHT   COMPANIES, 

see    several    states. 

GEORGIA, 68 

Gas  &  Electric  Light, 

rates, 

fixed  by  contract, 68 

GRAIN  ELEVATORS, 

rates,  may  be  regulated, 5,  15 

HISTORY,   1,  2,  6 

IDAHO, 68 

Gas  &  Electric  Lighting. 

corporations, 

must  supply  gas  on  written  application, 68 

ILLINOIS, 60 

Gas  &  Electric  Light, 
Chicago, 

empowered  to  fix  maximum  rates, 70,  71 

sale  of  surplus  gas  and  electricity  by, 69,  70 

Gas    Companies, 

consolidation    of, 69 

not  to  increase  price, 69 


160  INDEX. 

PAGK 

INDIANA, 72 

Gas  &  Electric  Light, 
cities   and    towns, 

electric  light  commission, 73 

may  contract  for, 72 

regulation  of  rates,  no  provision  for 73 

INJUNCTIONS, 

see  Actions. 

IOWA, 73 

Gas  &  Electric  Light, 
cities    and    towns, 

empowered  to  regulate  rates, 73 

KANSAS, 74 

Gas  &  Electric  Light, 

electric  power, 74 

heat,     74 

municipalities, 

gas  and  electric  light, 74 

may  contract  for, 74 

may   fix   charges   for, 74—76 

water,     74 

LEGISLATIVE  CONTROL, 

legislature  has  power  to  fix  rates, 3 

limitation    of, 4 

LIGHTING, 

see  Electric  Light  Companies, 

see  Gas  Light  Companies. 
LIMITATION, 

legislative    power, 5,    8 

see   Cases   Digested. 


INDEX.  161 

PAGE 

MASSACHUSETTS, 77 

Gas  &  Electric  Light, 

Board  of  Gas  &  Electric  Light  Commissioners 

complaint  to, 77 

companies  may  apply  to  Board  to  fix  rates,..  .  .78-79 

light,  reasonable  charges  for, 77 

may  order  reduction  charges  for, 78 

MICHIGAN, 79 

Gas  &  Electric  Light, 
cities    and    towns, 

may  contract  for, 79 

may  erect  plants  for, 79,  80 

may  fix  rates, 79 

MINNESOTA, 82 

Gas  &  Electric  Light, 
cities    and    towns 

authorized  to  erect  plants  for, 87-89 

rates  for, 89 

corporations  may  construct  and  own  plants  for, .  .      82 

may  supply  for  public  use, 83 

reasonable   charges   for, 83 

state  has  power  to  fix  rates  for, 84-86 

MISSISSIPPI, 90 

Gas  &  Electric  Light, 
cities    and    towns, 

may  grant  franchises  for, 91 

may  erect  electric  plants  for, 91,  92 

may  fix  rates  for, 92 

maximum    rates, 93 

11 


162  INDEX. 

PAGK 

MISSOURI, 93 

Gas  &  Electric  Light, 

municipalities  may  contract  for, 94 

NEBRASKA, 95 

Gas  &  Electric  Light, 

light  commissioners, 97 

Mayor  and  council  provide  for, 95 

regulate  rates, 95-97 

may  contract  for, 9 

may  erect  plants  for, 96,  97,  99 

NEVADA, 99 

Gas  &  Electric  Light, 

corporations, 

may  construct  and  own  plants  for, 100 

may  supply  for  public  use, 100 

payment    for    franchises, 100-102 

NEW  HAMPSHIRE, 102 

Gas  &  Electric  Light, 

must  be  supplied, 102 

rates  must  be  reasonable, 102 

NEW  JERSEY, 102 

Gas  &  Electric  Light, 

cities    and    towns, 

may  contract  for  lighting, 104-107 

corporations  may  supply, 103 

rates  fixed  by  parties, 102 

NEW  YORK, 108 

Gas  &  Electric  Light, 

Commission  of  gas  and  electric  light, 108-111 


INDEX.  163 

NEW  YORK— continued. 

powers    of, 112-119 

complaint  to   119 

fixing    price   of, 120-123 

OHIO, 123 

Gas  &  Electric  Light, 
cities    and    towns, 

may  contract  for  supply  of, 125,  126 

may  fix  price  for  corporations  supplying, 126 

may  erect  and  purchase  plants, 124 

maximum   rates,    124 

regulation  of  rates  by 123,  124 

ORDINANCE, 

unreasonable  rates  enjoined, 32,  33 

RAILROADS, 

rates   for,  may  be  regulated, 5,  8,  22-26 

RHODE  ISLAND,   127 

Gas  &  Electric  Light, 

rates  for  corporations  supplying, 127,   128 

STOCK  YARDS, 

rates  for  may  be  regulated, 5,  43 

SOUTH  CAROLINA, 128 

Gas  &  Electric  Light, 

Board  of  Commissioners  of 128 

consent  to  construct  plants, 128 

erection  of,  by  cities, 128 

grant  of  franchises  for, 130 

public  works,  rates  for, 128 


164  INDEX. 

PAGE 

SOUTH  DAKOTA, 130 

Gas  &  Electric  Light, 

corporations  authorized  for, 131 

rates  fixed  by  contract, 131 

TENNESSEE, 131 

Gas  &  Electric  Light, 

corporations    authorized    for, 131-133 

rates  for,  must  be  reasonable 132 

TEXAS, 133 

Gas  &  Electric  Light, 
city  council, 

provides  for  light, 133,  134 

corporations  for,  authorized 134 

may  contract  with  cities  for  supply  of, 134,  135 

UTAH, 135 

Gas  &  Electric  Light, 

city  council, 

contracting  for  supply  of, 136 

erection  of  plants  for,  by 136 

erection  of  plants  by  others, 136 

lighting  by,   135 

rates  for,  regulated  by 136 

VERMONT, 137 

Gas  &  Electric  Light, 

corporations   for  authorized, 137,  138 

erection  of  plants  by  towns, 137 

rates  fixed  by  contract, 137 


INDEX.  165 

PAGE 

VIRGINIA, 138 

Gas  &  Electric  Light, 

corporations  for,  under  control  of  state  corporation 

commission 139 

prices  for,  not  regulated 139 

WATER   COMPANIES, 

rates  may  be  regulated, 5,  40,  54 

WASHINGTON, 140 

Gas  &  Electric  Light, 

cities  may  erect  plant, 140 

may  authorize  others  to  erect, 141 

price  for  regulated  by, 141 

WISCONSIN, 141 

Gas  &  Electric  Light, 

city  council  has  control  of, 141 

may   purchase   plant, 141-143 

may  fix  rates, 144 

city  may  supply  to  inhabitants  and  others, 146 

erection  of  plant  by  cities, 145 

franchises  to  corporations, 144 


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